Trump deflects reports on firing Fed Chair Powell ‘soon’

President Donald Trump today clawed back remarks he made to Republican lawmakers that indicated he planned to fire Federal Reserve Chair Jerome Powell "soon."

The president said the firing of Powell was "highly unlikely." (Note: it is also very likely illegal.)

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"We're not planning on doing anything,'' the president told reporters in the Oval Office. But added "we're very concerned.''

Image source: Kevin Dietsch/Getty Images

GOP lawmaker meeting kicks off reports

The president addressed news reports that he told GOP lawmakers last night that he was planning to fire Powell "for cause" over possible fraudulent overruns over the remodeling of the Fed's Washington, D.C. headquarters.

Related: Millions of Medicare beneficiaries could see major price shock

Trump clarified that he "talked about the concept of firing" Powell, and that the members of Congress in the room agreed with him.

"They all said they would fire him,'' the president said.

Trump has been ratcheting the rhetoric about Powell in recent months, calling him names like "knucklehead" and blaming the Fed chair for not cutting interest rates.

The nation's central bank has long maintained a non-political approach to monetary policy, relying on economic data to adhere to its dual mandate of low inflation and stable employment with steady growth.

More Federal Reserve:

• Fed interest rate cut decision resets forecasts for the rest of this year
• Federal Reserve prepares strong message on long-term interest rates
• Fed official revamps interest-rate cut forecast for this year

It uses the Federal Funds Rate to administer monetary policy that trickles down into the cost of borrowing money for all Americans.

Before today's news, the CEOs of two of the nation's top banks stated support for the importance of an independent Federal Reserve operating without political restraints.

Banking leaders support central bank independence

Goldman CEO David Solomon was on-air this morning with CNBC when he stressed the need for an independent central bank. Then news of last night's meeting broke. Solomon, still on set, declined to comment.

JPMorgan Chase CEO Jamie Dimon told reporters yesterday that he hoped Trump would not make good on threats to replace Powell before the end of the chair's term in May.

"Playing around with the Fed can often have adverse consequences…the absolute opposite of what you might be hoping for," Dimon said.

This story will be updated.

Related: June inflation numbers reset Fed interest rate cut expectations

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This story was originally published July 16, 2025 at 11:50 AM.