President Trump met with a group of House Republicans on Tuesday and hosted a discussion on whether he should fire Fed Chair Powell, according to CBS News. Trump has criticized Powell several times during the past few months for failing to lower interest rates.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The group sided with Trump, with sources close to the matter saying that he would move forward with Powell’s removal. Powell’s term ends in May 2026.
The news has increased the odds of a September rate cut on the possibility of a dovish Chair replacement. There is a 62.9% chance of a 25-bps cut, up from 54.5% yesterday but down from 65.8% a week ago.
Can Trump Legally Fire Powell?
The law says that a Fed Chair can only be removed “for cause.” It’s unclear what would satisfy this requirement, although Powell has come under fire in recent weeks for the Fed’s $2.5 billion renovation of its Washington, D.C. headquarters.
“Hearing Jerome Powell is getting fired! From a very serious source,” said Representative Anna Paulina Luna in an X post. She later said “I’m 99% sure firing is imminent.”
Trump had previously said that he would hold off on firing Powell. He has accused Powell of costing the U.S. over $1 trillion in additional debt payments.
Follow Trump’s social posts and analyze their sentiment and the stocks that they could affect with TipRanks’ Trump Dashboard.
