In an interview with Real America's Voice broadcast on 16/7, US president Donald Trump discussed Federal Reserve (Fed) chair Jerome Powell. "I would be very happy if he resigned. It's up to him. They say if I do that, it will upset the markets," he explained.
Earlier, US media, citing sources close to the matter, reported that on 15/7, Trump met with Republican lawmakers after they blocked a vote on a digital currency bill he was promoting.
On CNBC, a senior White House official revealed: "The president asked lawmakers how they would feel about firing the Fed chair. They seemed agreeable. Then the president hinted he might act soon." The New York Times, citing sources, reported that Trump had even drafted a letter firing Powell and showed it to lawmakers during the meeting.
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US president Donald Trump at the White House on 16/7. Photo: Reuters |
US president Donald Trump at the White House on 16/7. Photo: Reuters
These reports caused the price of gold to rise by nearly 50 USD an ounce in just half an hour. However, the price cooled down when the US president quickly denied the reports.
"I'm not ruling anything out. But I think it's very unlikely unless he has to leave because of fraud," Trump said, alluding to the Fed's headquarters renovation project.
The White House and Republican lawmakers have recently criticized cost overruns in the project, raising questions about whether Trump might be trying to find a reason to remove the Fed chair. However, there is currently no evidence of fraud, and the Fed has denied criticism of their management of the project.
For the past few months, the US president has repeatedly urged the Fed to cut interest rates, but without success. Trump has consequently criticized the Fed chair on social media, calling Powell "foolish," "slow," and "stubborn," and even threatening to fire him.
More recently, Trump has stopped threatening to fire Powell, after the Supreme Court supported the view that the president cannot remove the Fed chair simply because of policy disagreements. This is seen as a guarantee of the Fed's independence.
In previous statements, Powell has always emphasized that the president does not have the authority to fire him. No US president has ever done so, although they have criticized Fed chairs. Powell's current term ends in 5/2026.
Ha Thu (via Reuters)
