Trump asked GOP lawmakers if he should fire Fed Chair Jerome Powell
Washington — President Trump on Tuesday asked a group of House Republicans if he should fire Federal Reserve Chair Jerome Powell — and people in the room voiced approval. Several sources said Mr. Trump indicated he will do it.
Mr. Trump on Wednesday confirmed to reporters in the Oval Office that he spoke to lawmakers about ousting Powell.
"I talked to them about the concept of firing him. I said, 'What do you think?' Almost all of them said I should. But I'm more conservative than they are," he said.
Sources told CBS News that Mr. Trump made the comments to the Republican House members in the Oval Office on Tuesday night, after they blocked a procedural vote that would have advanced cryptocurrency legislation in the House favored by Mr. Trump.
The idea of a president removing a Fed chair is legally untested — federal law says the chair can only be fired "for cause." The action could have serious negative effects on financial markets.
Asked Wednesday if he wants Powell investigated for fraud related to the renovations of the Fed headquarters, Mr. Trump said, "Well, I think he's already under investigation. He spent far more money than he was supposed to rebuilding."
"I think he's, you know, he's got some problems," Mr. Trump said. He added there are "many people" who want the chair role.
Russ Vought, the Office of Budget and Management director, sent a letter last week to Powell accusing him of an "ostentatious" yearslong office renovation project that may be "violating the law." In testimony to the Senate last month, Powell called some descriptions of the renovation project "misleading and inaccurate."
Sources inside the administration told CBS News the president has been socializing the possibility of a for-cause firing in public and private remarks, but the White House has not yet formally built a legal predicate.
The Trump administration has tried to increase the pressure on Powell, with some administration officials publicly accusing the Fed of mismanaging a multibillion-dollar project to renovate its Washington headquarters — an allegation Powell has pushed back on.
For decades, Federal Reserve leaders have operated with a high degree of independence from the rest of the government, allowing them to make decisions about the nation's monetary policy with little input from politicians.
Florida Rep. Anna Paulina Luna, one of the Republicans who voted against advancing the crypto legislation, wrote in an X post Tuesday night, "Hearing Jerome Powell is getting fired! From a very serious source."
In a later post, she wrote, "I'm 99% sure firing is imminent."
Several lawmakers in the Oval meeting declined to comment, saying the discussion was private. White House spokespeople didn't immediately comment.
Some members of the House Financial Services Committee were planning to meet with Powell on Wednesday night, sources told CBS News. Some members want to reinforce the independence of his role, one of the sources said.
But a spokesperson for the committee's chairman, Rep. French Hill, said the meeting was canceled due to uncertainty with vote timing in the House. Hill said the meeting had been scheduled months ago to introduce freshman members of the committee to Mr. Trump.
Mr. Trump's dissatisfaction with Powell, and his view that the Federal Reserve is not acting quickly enough to cut interest rates, has been a frequent topic of discussion for the president in recent weeks. Mr. Trump has nicknamed Powell — who was first elevated to the role of Fed chair by Mr. Trump — "Mr. Too Late."
"I think he's terrible," Mr. Trump told reporters Tuesday. "You talk to the guy, it's like talking to a — nothing. It's like talking to a chair. No personality."
"I think he's a total stiff. But the one thing I didn't see him is a guy that needed a palace to live in," he said, referring to the building renovation.
Last month, Mr. Trump insisted he wouldn't force Powell out, though he has called on Powell to resign before his term as chair ends in May 2026.
"The fake news is saying, 'Oh, if you fired him, it would be so bad, it would be so bad.' I don't know why it would be so bad, but I'm not going to fire him," the president said June 12.
Mr. Trump has lashed out against the Fed for leaving interest rates steady so far this year after cutting rates last year. Further rate cuts could boost economic growth and make it easier for Americans to borrow money, but at the risk of causing inflation to spike.
Interest rates remain near a two-decade high, after the Fed hiked rates in 2022 and 2023. Inflation has dropped significantly since then, but it remains above the Fed's 2%-per-year target, and Powell has indicated he plans to move cautiously. Powell has also said the Fed is concerned Mr. Trump's tariffs could cause inflation to worsen.
Mr. Trump has argued inflation is already low enough to start cutting rates. He has criticized Powell in increasingly sharp terms, calling him a "Total and Complete Moron" and a "numbskull" in a Truth Social post last month.
Powell was initially picked as Fed chair by Mr. Trump during his first administration, and former President Joe Biden nominated him for a second four-year term in 2022.
A firing would immediately spark a legal challenge. The U.S. Supreme Court recently indicated they don't think Mr. Trump has the authority to do so. The justices in May ruled Mr. Trump can fire members of independent federal agencies including the National Labor Relations Board, but said its decision did not necessarily apply to the Federal Reserve because it is a "uniquely structured, quasi-private entity."
Ed O'Keefe contributed to this report.
Jennifer Jacobs is a senior White House reporter at CBS News.
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