US President Donald Trump and his administration will “continue to study,” whether it’s possible to remove Federal Reserve chief Jerome Powell, his top White House advisor said on Friday.
“The president and his team will continue to study that matter,” National Economic Council director Kevin Hassett told reporters, when questioned about the possibility of Powell’s termination, following Trump’s recent criticism.
Although the US president lacks direct authority to remove Federal Reserve governors, there exists a complex procedure through which Trump could attempt to remove Powell by demonstrating sufficient cause.
Trump has repeatedly expressed dissatisfaction with Powell, his own nominee, suggesting that the Fed chairman’s decisions are politically motivated.
During a Wednesday meeting, Powell indicated that Trump’s comprehensive tariff policies could lead “a temporary rise in inflation,” and reduced economic growth, potentially forcing the Federal Reserve to make difficult choices between managing inflation and unemployment.
“You’ll probably see continued volatility,” Powell added.
The Republican president expressed his stance firmly on Thursday, declaring: “I’m not happy with him. I let him know it and if I want him out, he’ll be out of there real fast, believe me.”
Taking to his Truth Social account Trump posted, “The ECB is expected to cut interest rates for the 7th time, and yet, “Too Late” Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.”
“Powell’s termination cannot come fast enough,” he continued. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” he added.
