Wed Jul 16 18:29:03 UTC 2025: **Summary:**
President Trump, after privately considering firing Federal Reserve Chair Jerome Powell due to disagreements on interest rates, publicly stated it was “highly unlikely” unless Powell committed fraud. This followed accusations of mismanagement regarding a Fed renovation project. The news initially caused market volatility, but stocks stabilized after Trump’s later comment. While some House Republicans supported the idea of firing Powell, Senate Republicans have been more cautious.
**News Article:**
**Trump Backtracks on Powell Ouster, Markets React**
*Washington, D.C. – July 16, 2025* – In a dramatic turn of events, President Donald Trump stated yesterday that he was “highly unlikely” to fire Federal Reserve Chair Jerome Powell, walking back comments made just hours earlier in a private meeting. The President’s public statement followed a White House meeting with House Republicans, where he reportedly discussed dismissing Powell due to the Fed chair’s reluctance to lower interest rates, a long-standing point of contention between the two.
Sources within the White House indicated that Trump even brandished a letter about firing Mr. Powell during the private meeting. However, it later transpired that the letter was not drafted by Mr. Trump.
The about-face came during a meeting with the crown prince of Bahrain. When questioned on the matter, President Trump tempered speculation stating his intentions, “unless he has to leave for fraud”.
The uncertainty surrounding Powell’s position triggered volatility in the U.S. stock market. After initial reports of a possible dismissal, the S&P 500 briefly dropped 0.7%, before trimming losses following Trump’s clarification.
The President’s pressure on Powell has been intensifying, with recent accusations of mismanagement regarding a $2.5 billion Fed renovation project. However, the move has met with resistance from within his own party. While some House Republicans seemingly supported the idea, Senate Republicans have taken a more cautious approach, awaiting an inspector general’s review of the renovation project.
Senator Thom Tillis (R-N.C.) warned of an “immediate response” if Powell is dismissed, stating, “If anybody thinks it would be a good idea for the Fed to become another agency in the government subject to the president, they’re making a huge mistake.” Senator John Kennedy (R-La.) acknowledged disagreements with Powell but praised his integrity, stating, “I do believe that the chairman is calling them like he sees them.”
A planned meeting between Powell and the House Financial Services Committee was abruptly cancelled due to House votes. The situation remains fluid as the relationship between the White House and the Federal Reserve continues to be closely watched.
First Piper 