'Not Planning On Doing Anything': Trump Softens Stance On Firing Fed Chair Jerome Powell

Last Updated:July 16, 2025, 22:40 IST

Trump’s comments were somewhat mixed. While he denied immediate plans to dismiss Powell, he added he was not ruling out the possibility entirely

US President Donald Trump said he has no plans to remove Federal Reserve Chair Jerome Powell. (AFP photos)

US President Donald Trump on Wednesday said he has no plans to remove Federal Reserve Chair Jerome Powell, despite previously hinting at the possibility during a private meeting with congressional Republicans that was later leaked to the press.

Asked by reporters if he intended to fire Powell, Trump replied, “No, we’re not planning on doing anything."

However, Trump’s comments were somewhat mixed. While he denied immediate plans to dismiss Powell, he added he was not ruling out the possibility entirely.

“I don’t rule out anything, but I think it’s highly unlikely," Trump said. He also noted that he could make a change when Powell’s term ends next year.

After months of increasing criticism of the independent central bank chief, Trump’s mixed signals caused 30-year US Treasury bond yields to rise above five percent.

The US president has criticised Powell heavily in recent months, accusing him of not lowering interest rates fast enough. Trump has called Powell a “numbskull" and a “moron" during public remarks.

On Tuesday, Trump suggested that a $2.5 billion renovation plan for the Federal Reserve’s headquarters might be reason enough to remove Powell. When asked if the spending was a fireable offence, he said, “I think it sort of is."

Reports surfaced that Trump received political support from Republican lawmakers for firing Powell. A White House official told CNBC that the president indicated he would likely act soon.

Powell’s current term as Fed Chair runs till May 2026, and he has said he does not intend to step down early. He has also stressed the importance of the Federal Reserve’s independence in setting monetary policy.

Markets reacted negatively to the reports about Trump’s potential plans. The US dollar dropped by 1% against the euro, while gold — seen as a safe-haven asset — gained value.

Wall Street also declined, with the Dow Jones Industrial Average falling 0.2%, the S&P 500 losing 0.3%, and the Nasdaq Composite down 0.4%. Meanwhile, the yield on the 30-year US Treasury bond jumped on investor concerns.

(With inputs from AFP)

United States of America (USA)

News world 'Not Planning On Doing Anything': Trump Softens Stance On Firing Fed Chair Jerome Powell