Trump showed House Republicans a draft letter to remove Fed Chair Powell, as reported by YFT and The New York Times.

He asked GOP lawmakers if he should go forward with firing Powell and claimed most supported the idea.

Legal experts say firing a Fed chair over policy disagreements is not allowed under current law.

According to YFT, President Donald Trump recently showed a copy of a letter to a group of House Republicans to remove Federal Reserve Chair Jerome Powell.

It was held in the Oval Office and was initially supposed to be about crypto legislation. Instead, the lawmakers were sidetracked when Trump questioned them about whether he could fire Powell. According to most of them, they agreed, and Trump informed them that he was likely to do so.

Attendees of the meeting said he was serious in tone. He has long accused Powell of not cutting interest rates quickly enough, saying the Fed is being too cautious and that the economy is suffering as a result. Powell was appointed by the president in 2018, but the two men’s relationship has soured since.

Although Trump later claimed he had “no immediate plans,” that a draft of the letter was penned and shared privately indicates that he may be more willing to compromise than initially believed.

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Trump Signals Powell’s Removal Over $2.5B Fed Project

Under current U.S. law, a president can’t fire the chair of the Federal Reserve. In other words, there needs to be some documented misconduct or malfeasance, not a difference of opinion with policy. The Supreme Court recently reiterated these limitations with a ruling on independent government commissions. Powell’s current term runs through May, but he can remain on the board through 2028, lawfully.

During the same Oval Office conversation, the President mentioned the current Federal Reserve headquarters renovation. He implied the $2.5 billion project, which is currently going $700 million over budget, could consist of fraud. Some believe that is a way of explaining why he wants to fire Powell based on the legal interpretation of “cause.”

CNBC reported that later, hours after the closed-door session, he stated at the White House that he was not going to act, characterizing the move as “highly unlikely.”

Political Theater or Serious Move?

While a few of Trump’s aides believe that he just wants to threaten Powell, others are not so sure. Representative Anna Paulina Luna tweeted on X during the session that the removal of Powell was imminent, which fueled rumors. CBS News likewise validated that Trump himself interrogated lawmakers about removing Powell.

Financial markets held steady, but economists warned that if Trump proceeds, that might shake investor confidence. No American president before that attempted to fire a Fed chair. Whether that becomes a fait accompli or a threat that never comes to fruition, Trump’s threat of going after Powell only seems to escalate.

Also Read: Trump Pushes GENIUS Act to Boost U.S. Position in Digital Assets

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Filed under: Bitcoin - @ July 16, 2025 5:22 pm