Trump says he’s ‘highly unlikely’ to fire Fed’s Jerome Powell after floating that idea in private

President Donald Trump said on Wednesday (July 16, 2025) that he was “highly unlikely” to fire Federal Reserve Chair Jerome Powell, a public statement made less than 24 hours after suggesting in a private meeting that he was leaning in favour of dismissing the head of the nation’s central bank.

Mr. Trump confirmed that in a White House meeting on Tuesday night with about a dozen House Republicans he had discussed the “concept” of dismissing Mr. Powell, long a target because of his refusal to lower interest rates as Mr. Trump wants.

“Almost every one of them said I should,” Mr. Trump said about the lawmakers who had come to talk to him about crypto legislation.

He indicated he was leaning in that direction, according to a White House official. During that session, Mr. Trump waved a letter about firing Mr. Powell, but a person familiar with the matter said it was essentially a prop drafted by someone else and that the Republican president has not drafted such a letter.

Neither source was authorised to publicly discuss the private meeting and they spoke only on condition on anonymity.

Mr. Trump made his comment about being “highly unlikely” to dismiss Mr. Powell — ”unless he has to leave for fraud” — during an Oval Office meeting with Salman bin Hamad Al Khalifa, the crown prince of Bahrain.

In recent days, White House and administration officials have accused Mr. Powell of mismanaging a $2.5 billion renovation project at the Fed, adding to months of efforts by Mr. Trump try to rid himself of the politically independent central banker.

U.S. stocks were shaky as Mr. Trump spoke about Mr. Powell on Wednesday. The S&P 500’s modest gain in the morning became a drop of 0.7 per cent after initial reports that the president may fire the Fed chair. Stocks then trimmed their losses after Mr. Trump’s later comment.

Treasury yields also swivelled in the bond market but remained mostly calm.

Those at the White House meeting were among the more far-right lawmakers, including members of the House Freedom Cause whose views are not always shared by other Republicans. In the Senate, Republicans have taken a more guarded approach. Some have backed Powell’s performance at the Fed as they await an inspector general’s review of the construction project.

In a speech Wednesday, Sen. Thom Tillis, R-N.C., said if Mr. Powell is dismissed, “you are going to see a pretty immediate response” “If anybody thinks it would be a good idea for the Fed to become another agency in the government subject to the president, they’re making a huge mistake,” said Mr. Tillis, who has announced that he is not running for reelection.

Sen. John Kennedy, R-La., said this week that Mr. Powell “has done a decent job.” “I don’t think he’s been perfect,” he said, adding that there have been times they disagreed, but “I do believe that the chairman is calling them like he sees them.”

Republicans on the House Financial Services Committee had been scheduled to meet with Powell on Wednesday evening in a gathering set months ago, but it was abruptly cancelled due to votes in the House, according to a committee aide granted anonymity to discuss a private meeting.