The New York Times reports that U.S. President Donald Trump drafted a letter firing Federal Reserve Chair Jerome Powell and showed it to House Republicans during an Oval Office meeting Tuesday night, polling them on whether he should proceed.
Trump Drafts Letter to Fire Fed Chair Powell, Polls GOP Support: NYT
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Trump confirmed Wednesday he discussed firing Powell with lawmakers, saying most advised him to do it, but insisted he has no imminent plans and denied drafting a letter despite The New York Times’ report. The president cited frustration over Powell not cutting interest rates and criticized the Fed building’s costly $2 billion renovation. While some allies believe Trump is merely antagonizing Powell, the existence of the draft letter indicates serious consideration of an unprecedented move. Legally, firing a Fed chair requires “cause” like malfeasance, not policy disputes, a protection recently upheld by the Supreme Court. Economists warn that markets, currently dismissing Trump’s threats, could react severely if he pursues removal, risking economic fallout.
