U.S. President Trump admits he is not planning to fire Fed Chair

U.S. President Trump initially suggested he was considering firing Federal Reserve Chair Jerome Powell, even showing a draft termination letter during a meeting with House Republicans. However, he later stated that it was unlikely unless fraud was involved. This occurred after reports that lawmakers supported the idea of removing Powell. The potential firing stemmed from Trump's dissatisfaction with the Fed's interest rate policy; Powell has kept rates flat since late 2024, while Trump advocates for significant rate cuts of up to 3 percentage points. Reports of Trump's initial consideration of firing Powell caused market dips, which were subsequently reversed when he denied the immediate plans. Trump also criticized the Fed Board, despite having appointed some of its members. The potential justification for firing Powell also included a $2.5 billion remodel of the Federal Reserves building. The federal funds rate is currently between 4.25% and 4.5%.