President Donald Trump has stated that it is “highly unlikely” he will dismiss Federal Reserve Chairman Jerome Powell “unless he has to leave for fraud.”
This statement follows less than 24 hours after Mr. Trump suggested, in a private meeting, that he was leaning towards removing the head of the U.S. central bank.
Mr. Trump confirmed that he discussed the “concept” of firing Mr. Powell during a meeting with approximately a dozen Republicans gathered at the White House on Tuesday to discuss crypto legislation in the House of Representatives.
“Almost every one of them said I should,” Mr. Trump said on Wednesday during an Oval Office meeting.
U.S. stocks experienced volatility after the news broke, as such an action could assist Wall Street in obtaining the lower interest rates it favors, but it would also jeopardize a weakened Fed’s ability to make the unpopular decisions required to maintain inflation under control.
Meanwhile, House Speaker Mike Johnson refrained from directly calling for Mr. Powell’s dismissal, citing uncertainty regarding the “executive authority” involved.
However, he did suggest that “new leadership would be helpful at the Fed.”
“I’ve been unhappy with the leadership there personally,” Mr. Johnson told reporters on Wednesday.
