In a move that sparked immediate concern among economists and lawmakers alike, former President Donald Trump recently raised the idea of firing Federal
Reserve
Chair Jerome Powell during a private meeting with Republican members of Congress—only to walk it back hours later.
According to multiple GOP
aides familia
r with the discussion, Trump—who is currently running to reclaim the White House—expressed frustration with Powell’s recent decisions to keep interest rates elevated, calling them “politically motivated” and “a disaster for American growth.” Trump reportedly told lawmakers he was considering removing Powell if elected, despite legal ambiguity surrounding such a move.
“Can we just get rid of him now?” Trump was quoted as saying, according to two attendees. “He’s killing the economy on purpose.”
The comments came during a closed-door policy session on Capitol Hill, where Trump has been holding a series of meetings to shore up support among congressional Republicans and shape the GOP’s economic messaging ahead of the 2026 midterms.
However, as reports of the exchange began to leak, Trump’s campaign team issued a statement suggesting the former president was merely “venting frustration” and “not formally proposing any personnel decisions.” Trump himself later appeared to walk back the idea during a Fox Business interview, saying, “I have big disagreements with Powell, but we’ll see what happens. I’m focused on fixing the damage Joe Biden has done first.”
A Familiar Target
Trump has had a long and turbulent history with Powell, whom he originally appointed as Fed chair in 2018. During Trump’s first term, he frequently lashed out at Powell on social media and in public comments, accusing him of undermining the economy with tight monetary policy. At one point in 2019, Trump even explored whether he had the authority to demote Powell, but ultimately backed down amid legal concerns and political backlash.
Under current law, the Federal Reserve chair can only be removed “for cause,” and there is no clear precedent for a president firing a Fed chair over policy disagreements.
Still, Trump’s remarks have raised fresh questions about his willingness to challenge institutional norms and the independence of the central bank.
GOP Reactions Mixed
Reactions among Republicans were mixed. Some
lawmakers
appeared to agree with Trump’s critique of Powell’s policies, arguing that high interest rates are stifling the economy. “The Fed is out of touch,” said Sen. Rick Scott (R-Fla.), a longtime Powell critic. “We need leadership that prioritizes growth and prosperity.”
Others, however, were more cautious. Sen. Mitt Romney (R-Utah) warned against politicizing the central bank. “We don’t want to go down the path of undermining the Fed’s independence. That’s dangerous territory,” he said.
Privately, several Republican strategists voiced concern that renewed attacks on Powell could unsettle financial markets and distract from the party’s broader economic message.
Market and Expert Reactions
The mere suggestion of removing Powell
sent brief tremors through Wall Street
. The Dow Jones Industrial Average dipped slightly in early trading Thursday before stabilizing after Trump’s clarifications. Economists quickly weighed in, with several warning that tampering with the Fed could have serious consequences.
“Threatening the independence of the Fed—even rhetorically—risks eroding confidence in the U.S. economy,” said Austan Goolsbee, president of the Chicago Federal Reserve Bank. “Markets need certainty, not political volatility.”
Looking Ahead
Trump’s latest comments reflect his growing assertiveness as he campaigns for a return to the Oval Office, with an economic platform focused on growth, low taxes, and aggressive trade reforms. But his remarks also underscore a broader tension: the balance
between
political leadership and the independent institutions that help govern the U.S. economy.
Whether his remarks were a trial balloon or simply an outburst, one thing is clear—Trump is once again willing to test the boundaries of presidential power.
