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Just hours after media reports said he had discussed with Republican lawmakers the firing of US Federal Reserve Chairman Jerome Powell, President Donald Trump publicly denied that he has any plans to remove him from office.
"We have no such plan," Trump told reporters, adding that such action is "quite unlikely."
According to White House sources, citing CNBC, Trump had earlier asked Republican lawmakers for their opinion on the idea of firing Powell. “They were in favor and the president indicated that he might do it soon,” a senior official said.
The New York Times went even further, reporting that Trump had drafted an official letter to fire Powell, which he had even shown to Republicans during a closed-door meeting.
Why is Trump unhappy with Powell?
The disagreements between Trump and the Fed chief are not new. According to Bloomberg, the president has frequently criticized Powell for his decision to keep interest rates unchanged, and recently accused him of "luxurious and excessive spending" at the Fed's offices.
Asked by reporters whether these expenses were grounds for impeachment, Trump said:
"I believe they are," but he did not confirm whether he plans to remove her for this specific reason.
On the other hand, Jerome Powell himself has dismissed as untrue the news of excessive renovations and has requested that the matter be investigated by the Fed's inspector general.
He stressed that under the Federal Reserve Act, a president cannot dismiss members of the Fed Board, including the chairman, without a strong and legal reason.
"No one can remove us without a valid reason," Powell had declared in April.
We recall that his term as chairman of the Federal Reserve lasts until May 2026.
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