(NewsNation) — President Trump has privately discussed firing Federal Reserve Chairman Jerome Powell for several months, a source with knowledge of the conversations confirms to NewsNation.
Trump has repeatedly voiced displeasure with Powell because the Federal Reserve, in the president’s view, has not been aggressive enough in cutting interest rates.
Trump, as well as several administration officials, thought Powell would push cuts in interest rates following the economic tumult caused by the imposition of the tariffs in recent weeks, the source tells NewsNation.
Trump rails against Fed chair: His ‘termination cannot come fast enough’
“I would say the Fed really owes it to the American people to get interest rates down. That’s the only thing he’s good for,” Trump told NewsNation’s Kellie Meyer on Thursday during an Oval Office photo-op.
Advisers both in and out of the White House have counseled Trump not to fire Powell because the markets would react negatively to it, the source with knowledge says.
One of those he has spoken to about Powell is former Federal Reserve Governor Kevin Warsh, whom Trump meets with regularly, according to the source.
Powell says Federal Reserve can wait on any interest rate moves
The Wall Street Journal first reported on Trump’s private discussions regarding Powell’s future. Sources told WSJ that Warsh had urged Trump not to fire Powell because the move would upset the markets.
The White House had no comment on the reports concerning Trump’s private discussions.
An administration official confirmed that Trump has been discussing the possibility but downplayed the significance of any advice he had been given because Trump will make his own decision and pointed to his remarks Thursday.
Whether Trump can legally fire Powell is not clear because he leads an independent government agency.
“If I ask him to, he’ll be out of there,” Trump said. “I don’t think he’s doing the job. He’s too late, always too late, a little slow. And I’m not happy with him. I let him know it. If I want him out, he’ll be out of there real fast, believe me.”
He did not answer when asked if he was trying to relieve him.
