NATIONAL NEWS – Trump Weighs Firing Fed Chair Powell, Raising Alarms Over Central Bank Independence

Ananya Roy, News Writer

President Donald Trump has floated the idea of firing Federal Reserve Chair Jerome Powell, sparking concerns among lawmakers and market analysts over the potential fallout from undermining the central bank’s independence. During a closed-door meeting with House Republicans on Tuesday, Trump reportedly polled members on whether he should remove Powell, receiving broad approval. He later confirmed the conversation to reporters, saying he asked lawmakers, “What do you think?” and added, “Almost all of them said I should.” Though he called a firing “highly unlikely” for now, Trump said it might be justified if Powell is found guilty of fraud over a controversial $2.5 billion Fed building renovation.

The prospect of removing Powell, a Trump appointee who was later re-nominated by President Biden, has alarmed members of both parties. Legal experts note that firing a Fed chair is largely untested and could trigger global market instability. The U.S. dollar briefly dipped Wednesday after reports of Trump’s intent surfaced. Several GOP senators, including John Kennedy and Thom Tillis, warned that such a move could crash stock and bond markets and cast doubt on the Fed’s ability to set monetary policy independently. Trump’s frustrations center on Powell’s reluctance to slash interest rates and what he’s called “palace-like” renovation plans. While no formal action has been taken, Trump and his allies appear to be escalating pressure on Powell behind the scenes, part of a broader effort to reshape how the Fed operates ahead of the 2026 end of Powell’s term.