Trump Says He Has ‘No Intention’ of Firing Fed Chair Powell
Wall Street Journal
By Brian Schwartz, Nick Timiraos and Tarini Parti
Updated April 22, 2025 6:16 pm ET
President Trump said he is not planning to fire Federal Reserve Chairman Jerome Powell—and he signaled that tariffs on China could be lowered.
“I would like to see him be a little more active in terms of his idea to lower interest rates … but, no, I have no intention to fire him,” he told reporters in the Oval Office.
Trump’s comments came after he lashed out at Powell in recent days, writing on social media last week, “Powell’s termination cannot come fast enough!”
But on Tuesday, Trump dismissed recent comments by Kevin Hassett, the director of the National Economic Council, that the administration was studying whether the president could fire Powell.
“I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates. If he doesn’t, is it the end? No. It’s not,” Trump said.
Trump has privately raised the possibility of firing Powell to advisers in recent months. Last week, he expressed confidence that he had the authority to oust Powell. “If I want him out, he’ll be out of there real fast, believe me,” Trump said. And he renewed his criticism of Powell on Monday. Trump’s social-media posts about Powell have triggered market volatility.
The president also told reporters that 145% tariffs on China are “very high.”
“It won’t be that high,” Trump said. “It will come down substantially. But it won’t be zero. It used to be zero.”
Even if Trump were to try to fire Powell, he would likely have forced an uphill legal battle he didn’t need in the midst of an ongoing trade war with China and other U.S. trading partners.
Fed governors, which include the chair, can only be dismissed for cause, according to the central bank’s founding laws. Courts have generally interpreted that to mean malfeasance or dereliction of duty.
Powell has indicated he doesn’t believe the president has the authority to remove him before his four-year term expires next year, and a legal standoff likely looms if the president tries.
On Monday, stock markets and government bond prices fell, sending yields up, and the dollar weakened amid concerns that the president might attempt to challenge the Fed’s historic independence in setting interest rates by attempting to remove Powell.
“He got the hint. Firing Jay would be a catastrophic own goal,” said Mark Spindel, an investment manager who co-wrote a history of Fed independence.
Degrading the Fed’s independence could risk a surge in borrowing costs for households, companies and the U.S. government if investors feared that the central bank wouldn’t be able to set interest rates as it sees fit, said Spindel.
“Having a captured Federal Reserve has any number of bad outcomes, none of which helps the president or the country,” he said.
By Brian Schwartz, Nick Timiraos and Tarini Parti
Updated April 22, 2025 6:16 pm ET
President Trump said he is not planning to fire Federal Reserve Chairman Jerome Powell—and he signaled that tariffs on China could be lowered.
“I would like to see him be a little more active in terms of his idea to lower interest rates … but, no, I have no intention to fire him,” he told reporters in the Oval Office.
Trump’s comments came after he lashed out at Powell in recent days, writing on social media last week, “Powell’s termination cannot come fast enough!”
But on Tuesday, Trump dismissed recent comments by Kevin Hassett, the director of the National Economic Council, that the administration was studying whether the president could fire Powell.
“I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates. If he doesn’t, is it the end? No. It’s not,” Trump said.
Trump has privately raised the possibility of firing Powell to advisers in recent months. Last week, he expressed confidence that he had the authority to oust Powell. “If I want him out, he’ll be out of there real fast, believe me,” Trump said. And he renewed his criticism of Powell on Monday. Trump’s social-media posts about Powell have triggered market volatility.
The president also told reporters that 145% tariffs on China are “very high.”
“It won’t be that high,” Trump said. “It will come down substantially. But it won’t be zero. It used to be zero.”
Even if Trump were to try to fire Powell, he would likely have forced an uphill legal battle he didn’t need in the midst of an ongoing trade war with China and other U.S. trading partners.
Fed governors, which include the chair, can only be dismissed for cause, according to the central bank’s founding laws. Courts have generally interpreted that to mean malfeasance or dereliction of duty.
Powell has indicated he doesn’t believe the president has the authority to remove him before his four-year term expires next year, and a legal standoff likely looms if the president tries.
On Monday, stock markets and government bond prices fell, sending yields up, and the dollar weakened amid concerns that the president might attempt to challenge the Fed’s historic independence in setting interest rates by attempting to remove Powell.
“He got the hint. Firing Jay would be a catastrophic own goal,” said Mark Spindel, an investment manager who co-wrote a history of Fed independence.
Degrading the Fed’s independence could risk a surge in borrowing costs for households, companies and the U.S. government if investors feared that the central bank wouldn’t be able to set interest rates as it sees fit, said Spindel.
“Having a captured Federal Reserve has any number of bad outcomes, none of which helps the president or the country,” he said.
OP Comment: 🤣🤣🤣🤣🤣 I would like to hear from the MAGAs who've been insisting the tariffs are working, or try to deny he's been attacking Powell every day, and saying he's going to fire him, and how China is begging to make a deal, on daily basis. Now it's: I've never said that and the tariffs will come down substantially. Guess who's going to make your Christmas gifts MAGAs?
