Donald Trump says he will fire the Fed Chair, then says he won’t — so who’s he lying to this time? – We Got This Covered

President Donald Trump is causing a lot of confusion and worry about whether Federal Reserve Chairman Jerome Powell will keep his job by making statements that contradict each other. This leaves the public, financial markets, and even his own party unsure about what he really plans to do.

Reports came out saying President Trump told a group of Republican lawmakers that he would “soon fire” Jerome Powell. One Congresswoman, Anna Paulina Luna, even tweeted that the firing was “imminent.” This private statement, which seemed like a way to test the idea with his political supporters, quickly caused a strong reaction in financial markets. The value of the U.S. dollar dropped, gold prices went up, and major stock indexes fell.

However, in a sudden change just a short time ago, when asked directly about firing Powell, President Trump said, “I don’t rule out anything, but I think it’s highly unlikely.” But Bloomberg reported that he also added that it won’t come “unless he has to leave for fraud.” This last part seems to refer to a $2.5 billion renovation project at the Federal Reserve offices, which some critics have suggested could be used as a reason to fire Powell.

Trump is as wishy washy as ever

Even though he walked back his earlier statement in public, President Trump kept criticizing Powell’s work, calling his work lousy and suggesting there could be changes in 2026, when Powell’s term officially ends. He also mentioned that almost all the people in the room said that he should go during his talk with lawmakers.

The President’s conflicting statements show an ongoing disagreement between the White House and the Federal Reserve, which is supposed to be an independent institution that makes decisions about monetary policy without political influence. Trump has often criticized Powell for not cutting interest rates more aggressively, believing that doing so would help the economy.

Critics, including JPMorgan Chase CEO Jamie Dimon, are warning that there could be serious consequences if the Federal Reserve’s independence is weakened. Legal experts also point out that a Federal Reserve Chairman can only be removed “for cause,” meaning reasons like not doing the job well, ignoring responsibilities, or wrongdoing. While Trump has brought up the renovation project, there is no clear legal basis for firing a Fed chair over something like this, and any attempt would likely lead to a major legal battle.