Trump Discusses Firing Fed Chair Powell With Lawmakers

Reports, initially from Bloomberg citing a White House official, indicated President Donald Trump was likely to fire Federal Reserve Chair Jerome Powell, sparking sharp declines in U.S. stock indexes, a drop in the dollar, and falling Treasury yields. Trump reportedly discussed Powell’s potential removal with Republican lawmakers, seeking their input, though he later stated he was not planning to take action. The speculation led markets to increase bets on a possible interest rate cut as early as September. The episode heightened concerns about the independence of the Federal Reserve and the direction of U.S. monetary policy. Powell, who has faced criticism from Trump for not cutting rates, has stated his intention to serve his full term. The situation highlights ongoing tensions between the White House and the Fed regarding central bank autonomy.