Mr. Trump discusses firing Fed Chair Powell
President Donald Trump has secretly discussed for months the possibility of firing Federal Reserve Chair Jerome Powell. However, Trump has not yet made a final decision on whether to dismiss Powell before his term ends next year.
Sources say that during a meeting at the Mar-a-Lago resort, President Trump talked with former Federal Reserve Board member Kevin Warsh about the possibility of firing Powell ahead of schedule. Additionally, Trump is also considering appointing Warsh as the new Fed Chair if Powell is dismissed.
However, according to informed sources, Kevin Warsh advised President Trump not to fire Powell, suggesting that he should be allowed to complete his term normally and avoid interventions that could harm the independence of the Fed. Furthermore, U.S. Treasury Secretary Steven Mnuchin is also said to have opposed President Trump's plan to fire Chair Powell.
Information about Trump considering a change in Fed leadership once again raises concerns about the independence of the U.S. central bank as well as the potential impact on global financial markets. Previously, the relationship between Trump and Powell has been tense multiple times, especially when Trump criticized the Fed's interest rate policy during his term.