Trump Considers Firing Fed Chair Powell Amid Interest Rate Dispute

Donald Trump is reportedly contemplating the dismissal of Jerome Powell, the chair of the Federal Reserve, following Powell’s refusal to lower interest rates. This potential action has raised concerns about the independence of the US central bank and caused fluctuations in the stock market. On Wednesday, Trump stated it was “highly unlikely” he would proceed with terminating Powell, despite earlier indications that he had shown a draft letter for the dismissal to political allies.

The president has consistently urged the Federal Reserve to cut interest rates to stimulate economic growth. Powell has resisted these calls, citing the uncertainty surrounding inflation due to Trump’s controversial trade policies. Reports surfaced that during a meeting with House Republicans, Trump expressed dissatisfaction with Powell’s leadership and hinted at a possible dismissal. Following this news, the S&P 500 index experienced a significant drop before slightly recovering after Trump’s reassurances.

Despite the turmoil, Trump emphasized during a White House press event that there were no immediate plans to fire Powell. “We’re not planning on doing it,” he stated, attempting to quell fears in the financial markets. The benchmark index, which had fallen sharply initially, was down just 0.1 percent at 6,236.64 by lunchtime in New York.

In recent months, inflation rates in the US have increased, attributed in part to the impact of Trump’s trade policies. The president has reiterated his call for the Federal Reserve to reduce rates, yet policymakers have been cautious, primarily due to concerns about rising inflation. Although Trump has publicly criticized Powell and suggested he should resign, the president lacks the authority to dismiss him solely for monetary policy decisions. The Supreme Court has indicated that the Federal Reserve operates with legal protection.

Trump originally nominated Powell to lead the Fed during his first term, and President Joe Biden later reappointed him to serve until May 2026. Powell has affirmed his intention to continue in his role.

In a separate political context, Trump has recently faced backlash from his supporters regarding the handling of inquiries into the late socialite and convicted sex offender Jeffrey Epstein. The president has criticized his own base, labeling them “gullible weaklings” for questioning the transparency of the investigations related to Epstein’s crimes. In a lengthy post on his social media platform, Truth Social, he accused his past supporters of falling for what he deemed a “radical left” hoax.

Trump’s comments came as his supporters expressed increasing concern over the lack of information regarding Epstein’s client list, which has become a topic of speculation. Republican voters have urged Trump to release documents associated with the case, known as the Epstein Files. Several users on Truth Social responded to Trump’s remarks, urging him to provide clarity on the issue.

The president’s tone has shifted dramatically in recent days, moving from attempts to placate his followers to outright criticism. On Tuesday, Trump described the Epstein inquiry as “boring” but stated he supported the release of credible evidence without specifying what that might entail.

During his election campaigns, Trump has fueled various conspiracy theories, including notions of a “deep state” controlling the government. This has led to heightened paranoia within his base, particularly regarding the Epstein controversy. Following the announcement from the Justice Department and the FBI confirming that Epstein had died by suicide in 2019, further inquiries into his client list were deemed unnecessary.

Trump’s allies have directed their frustration at Pam Bondi, the attorney general overseeing the Epstein case, who had previously indicated that documents relating to Epstein’s clientele were available for review. High-profile conservatives have called for Trump to disclose all known information about Epstein, including his daughter-in-law, Lara Trump, who has publicly stated the need for more transparency on the matter.

As the situation unfolds, the implications of Trump’s potential actions regarding Powell and the ongoing Epstein inquiries may have lasting impacts on both his presidency and the political climate in the United States.