Trump reveals draft letter firing Fed Chair Powell during crypto bill discussion

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Key Takeaways

President Trump revealed a draft letter for firing Fed Chair Jerome Powell during a meeting originally focused on crypto legislation.
No modern president has attempted to remove a Federal Reserve chair, as legal protections are in place for the position.

President Trump showed a draft letter to fire Fed Chair Jerome Powell during an Oval Office meeting with House Republicans on Tuesday night, asking for their opinions on whether he should proceed with the dismissal, the New York Times reported Wednesday.

The meeting was originally scheduled to discuss concerns about crypto legislation, but Trump shifted focus to Powell, whom he appointed Fed chair in 2017 during his first presidency.

“Jerome Powell is going to be fired. Firing is imminent,” Representative Anna Paulina Luna, Republican of Florida, posted on X during the meeting.

Trump has recently escalated his criticism of Powell, calling for his resignation over his interest rate policies. The president has labeled Powell a “major loser,” a “numbskull” and a “stubborn mule,” while criticizing the Fed’s $2 billion building renovation project that is currently $700 million over budget.

Despite Trump’s Friday statement that he had “no plans to fire” Powell, whom he said was doing a “terrible job,” the existence of the draft letter suggests more serious consideration of the move.

Presidents cannot remove Fed officials without cause, a protection reinforced by a Supreme Court ruling in May regarding Trump’s authority to remove certain independent agency officials. No president in modern history has attempted to fire a Fed chair.

Powell’s term as chair ends in May, though he can remain on the Board of Governors until 2028.