The melodrama surrounding President Trump’s frustration over Federal Reserve Chairman Jerome Powell took several twists as several press reports insisted Trump was preparing to fire the central bank chief while the president himself asserted it was “highly unlikely” that he would boot Powell from his job.
Combined media reports claimed that Trump discussed the potential firing of Powell during a meeting with congressional Republicans on Tuesday night, going so far as to produce a draft letter of termination. These reports, which were sourced from unnamed officials, claimed Trump polled the lawmakers over whether he should fire Powell while indicating that he was likely to follow that course of action.
However, Trump told reporters at a press event this morning that Powell’s firing was not on his agenda.
“We’re not planning on doing anything,” Trump said. “I don’t rule out anything, but I think it’s highly unlikely. Unless he has to leave for fraud.”
The fraud comment refers to efforts by several administration officials – most notably Bill Pulte, the Federal Housing Finance Agency director – to create a scandal over cost overruns in the renovations at the Fed’s headquarters complex and whether Powell was honest in congressional testimony over the expenses incurred in the renovations. Although a recent Supreme Court decision stated that the president does not have the authority to remove Fed officials at will, it appears members of the administration are building the case that the renovation cost overruns could be a cause for Powell’s dismissal. However, there has been no movement within Congress to begin a probe of the Fed’s headquarters renovations, and Powell has already instructed the Fed’s Office of the Inspector General to look into the matter.
Photo by Joshua Roberts / International Monetary Fund / Flickr Creative Commons
