📝 Trump Denies Drafting Letter to Dismiss Federal Reserve Chairman Powell

Core Event On July 16, 2025, President Trump publicly denied drafting a letter to dismiss Federal Reserve Chairman Powell, stating that "there are currently no plans to take any action," but criticized Powell for his "poor job performance" and hinted at possible personnel changes within 8 months.

Event Summary

Trump's Position Trump explicitly stated in response to media reports about "dismissing Powell" that he had not drafted a dismissal letter, but acknowledged discussing personnel changes with lawmakers. He said there is a "high probability he will not dismiss Powell, unless fraud is proven," while repeatedly accusing Powell of not effectively performing his duties and expressing hope that he would resign voluntarily.

Event Background Recently, Trump has pressured Powell citing budget overruns for the renovation of the Federal Reserve headquarters (increasing from $1.9 billion to $2.5 billion), accusing him of "false statements" and "violations." Powell responded that the renovation was to meet safety requirements and emphasized the independence of the Federal Reserve. White House economic adviser Hassett and others support Trump's position that he "has the right to dismiss Powell."

Market Reaction Dismissal rumors initially triggered a plunge in U.S. stock markets, a rise in gold, and fluctuations in the dollar, but after Trump's clarification, market sentiment eased, and U.S. stocks ultimately closed higher. Analysts point out that if Trump forcibly removes Powell, it could impact the credibility of the dollar and trigger political turmoil.

Legal and Political Controversy The Federal Reserve Chairman's term lasts until May 2026, and legally the president lacks the authority to directly dismiss him. Trump's actions have been criticized as a threat to the independence of the Federal Reserve, potentially undermining global confidence in U.S. dollar policies and exacerbating domestic political struggles.