Trump's Mixed Messages on Powell's Future

President Donald Trump has been sending mixed signals about Federal Reserve Chair Jerome Powell's job security. After hinting at firing Powell during a meeting with Republican lawmakers, Trump later downplayed the possibility, calling it "highly unlikely." This back-and-forth has left many wondering about the true intentions of the White House.

The Confusion Begins

The confusion began when Trump asked Republican lawmakers for their thoughts on removing Powell. According to a senior White House official, the lawmakers expressed support for the idea, and Trump seemed inclined to proceed. However, Trump later denied any immediate plans to fire Powell, despite reports that he had even drafted a termination letter.

Criticism of the Federal Reserve

The Federal Reserve has been a target of criticism from Trump and other White House officials, who have been pushing for lower interest rates. Recently, they have also criticized Powell over renovations to the Fed's headquarters, leading to speculation that Trump might try to remove Powell for cause. However, a recent Supreme Court decision has clarified that the president does not have the authority to remove Fed officials at will.

Lawmakers Weigh In

Despite the mixed messages, some lawmakers have weighed in on the matter.

• Rep. French Hill, chair of the House Financial Services Committee, expressed doubt that Trump would fire Powell.
• Rep. Anna Paulina Luna, a Florida Republican, claimed on social media that Powell's firing is imminent, citing a "very serious source."

Powell's Response

Powell, for his part, has maintained that his firing is "not permitted under the law." Historically, no president has attempted to remove a Fed chair, although criticism of the central bank's leadership is not uncommon. Powell was nominated by Trump in 2018 to succeed Janet Yellen, who later became Treasury secretary under former President Joe Biden.

The Situation Remains Fluid

The situation remains fluid, with no clear resolution in sight. As the debate continues, the focus remains on the independence of the Federal Reserve and the limits of presidential power.