The Node: The Plot to Fire Powell

Donald Trump is reportedly considering firing Federal Reserve Chairman Jerome Powell, who he believes is keeping interest rates too high. Trump and others claim Powell's actions are hurting the U.S. economy and accuse him of political bias. A potential justification for firing Powell could be alleged misconduct related to a $2.5 billion renovation of the Federal Reserve headquarters. Treasury Secretary Scott Bessent has stated that a formal process to replace Powell is underway, and some members of Congress have suggested that Powell's removal is imminent. However, Trump has since denied plans to fire Powell and downplayed the renovation controversy. Currently, the market predicts a low chance (2.6%) of interest rate cuts at the upcoming Federal Open Market Committee meeting in July, but the likelihood increases to almost 60% for September.