Trump Denies Plans To Fire Fed Chair Jerome Powell, But Says 'Nothing Ruled Out'

(MENAFN- Live Mint) US President Donald Trump on Wednesday (July 16) denied report that he is planning to fire Federal Reserve Chair Jerome Powell, pushing back against a Bloomberg report citing a White House official who claimed Trump was likely to do so.

“Such reports are not true,” Trump told reporters.

'Highly unlikely... unless for fraud'

While dismissing immediate action, Trump said he wouldn't entirely rule out removing Powell under extreme circumstances.

“I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud,” he said, referring to criticism from the White House and Republican lawmakers about cost overruns in the Federal Reserve's $2.5 billion headquarters renovation in Washington, D.C.

Republican lawmakers more aggressive, says Trump

Trump acknowledged that he had conversations with some congressional Republicans about the possibility of firing Powell, but said his own stance was more cautious.

The US President said he did talk to some Republicans about it, and they're more aggressive than him.

Trump calls Powell a "terrible chair"

Trump launched a fresh verbal attack on Powell on Tuesday, sharply criticising his performance while clarifying that no immediate action is planned.

Speaking to reporters, Trump said Powell is "doing a terrible job" and labeled him a "terrible chair." The remarks mark the latest in a series of public criticisms Trump has leveled at Powell.

Fed points to Powell's intent to serve full term

In response to the mounting speculation, a Federal Reserve official reiterated Powell's commitment to serving out his current term, which ends on May 15, 2026.

When asked whether the White House has signaled any intention to remove Powell, the official simply referred to Powell's earlier public statements affirming his plan to complete the term.

Powell faces scrutiny over US Fed HQs renovation costs

Federal Reserve Chair Jerome Powell, who was first nominated by President Donald Trump in 2017 and reappointed for a second term by President Joe Biden in 2021, is facing fresh criticism from the Trump White House over cost overruns in a major renovation project at the Fed's historic headquarters.

Powell's current term runs through May 15, 2026.

$2.5 Billion renovation sparks dispute

Tensions escalated last week after the White House intensified its criticism of the Fed's spending . Russell Vought, Director of the Office of Management and Budget, sent Powell a letter expressing Trump's dissatisfaction, saying the president was“extremely troubled” by the soaring costs of the $2.5 billion renovation .

According to Vought, features like“VIP dining rooms” and upgraded elevators had contributed to what he called“exorbitant” expenditures inappropriate for a government facility.

Also Read | Who is Scott Bessent? Here's what Donald Trump said about him Powell pushes back, requests IG review

In response, Powell asked the central bank's inspector general to review the renovation project , a move aimed at demonstrating transparency and accountability.

The Fed also published a detailed FAQ-style factsheet on its website, rebutting several of Vought's claims. The document sought to clarify misconceptions about the building's design features, and to explain the budgeting process behind the project.

Trump pressures Fed for rate cuts as Powell resists amid inflation concerns

Trump has intensified his criticism of Federal Reserve Chair Jerome Powell , accusing him of failing to cut interest rates and urging his resignation. The president has argued that lower rates would reduce the federal government's borrowing costs, a point he has stressed repeatedly in recent weeks.

For months, Trump has publicly railed against Powell and the Fed's decision to hold interest rates steady , arguing that the current rate range of 4.25% to 4.5% is too high. He contends that rate cuts are essential to supporting economic growth and reducing the cost of financing federal debt .

However, Powell has pushed back, citing persistent inflationary pressures as the reason for their cautious stance . The central bank has repeatedly warned that cutting rates too soon could reignite inflation, ultimately forcing the Fed to take more aggressive actions later that could hurt the economy and increase borrowing costs even further.

Also Read | Trump says trade deal with India for 'access to Indian markets' close

MENAFN16072025007365015876ID1109810578