Donald Trump wants to know if he has the power to fire Fed chair Jerome Powell
- Trump has been attacking the Fed – and Jerome Powell personally – for the central bank’s interest rate increases
- Treasury Secretary Steven Mnuchin says Trump has denied ever suggesting firing Powell
US President Donald Trump has asked internal and external advisers about whether he can fire Federal Reserve Chairman Jerome Powell, two people familiar with the exchanges said, in a sign of his mounting frustration with the central bank chief.
News of Trump’s discussions about Powell prompted rebukes from lawmakers and alarm among economists and Wall Street executives.
Late Saturday, Treasury Secretary Steven Mnuchin tweeted a statement from the president: “I totally disagree with Fed policy … but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”
The two people familiar with Trump’s questions about his authority to remove Powell spoke on the condition of anonymity to freely discuss the private conversations.
One of them characterised Trump’s inquiry as a reflection of his rage over the stock market’s recent plunge and his desire to blame someone.
Many experts said the president most likely does not have the authority to remove Powell, whom Trump nominated to lead the central bank a year ago, largely on Mnuchin’s recommendation.
Trump has shattered many norms since becoming president, but one that has caught investors and economists off-guard is his willingness to publicly rail against central bank policy.