President Trump told GOP lawmakers Tuesday he may fire Fed Chair Jerome Powell, but walked back the idea Wednesday, calling it “highly unlikely,” according to sources cited by The New York Post.
The comments were confirmed by insiders familiar with the talks. However, after reports of his talks with GOP lawmakers emerged Wednesday, Trump downplayed the issue to reporters at the White House and denied a New York Times claim that he had drafted a letter to fire Powell.
“We’re not planning on doing anything,” Trump said. “I don’t rule out anything, but I think it’s highly unlikely. Unless he has to leave for fraud.”
Trump added that he might still try to remove Powell over the Fed’s $2.5 billion HQ renovation, first reported by The Post. The Dow briefly plunged nearly 800 points Wednesday before rebounding after Trump eased speculation. Some sources view the move as a pressure point on Powell, whom Trump appointed in 2018.
A Fed spokesman cited Powell’s April 4 statement that he plans to serve out his term, ending in May 2026. This comes amid Trump’s pressure to cut interest rates and backlash over what one official called Powell’s “deceptive” Senate testimony about the Fed’s $2.5 billion HQ renovation, which critics compare to the Palace of Versailles after costs jumped 30% from the original $1.9 billion estimate.
Powell denied The Post’s report on the Fed’s $2.5 billion renovations during questioning by GOP lawmakers, calling the coverage “misleading,” despite it aligning with 2021 planning documents. Elon Musk called the report “an eyebrow raiser” worthy of investigation. Approved during the pandemic, the project is now effectively taxpayer-funded due to the Fed’s $220 billion in losses—money that would otherwise be allocated to the Treasury for programs such as defense, Medicare, and Social Security.
COME LOOK: Powell welcomes renovation oversight of $2.5b price tag for upgraded HQ
