Tipsheet

Trump Isn't Going to Fire 'Too Late' Fed Chair Jerome Powell

Matt Vespa
Matt Vespa  |  July 16, 2025 1:25 PM

For once, I was hoping this New York Times article would be true. Reportedly, President Trump had drafted a letter intending to fire the Federal Reserve Chair, and economy-killer Jerome Powell, who has refused to cut interest rates (via NYT): 

President Trump showed off a draft of a letter firing the chair of Federal Reserve, Jerome H. Powell, during a meeting with roughly a dozen House Republicans on Tuesday night, polling them as to whether he should do it and indicating that he likely would, according to two people briefed on the meeting. 

The meeting in the Oval Office was on an unrelated topic — the House members’ apprehensions about a crypto-related piece of potential legislation. But Mr. Trump used the meeting to discuss what has become one of his favorite topics: his hatred of Mr. Powell, whom he elevated to chair in 2017, during his first presidency.

It remains to be seen whether Mr. Trump will actually go ahead with trying to fire Mr. Powell, a move that some in his administration have cautioned could be calamitous and have far more expansive fallout than the president appears to anticipate. 

The president threw cold water on these rumors in the Oval Office during a meeting with Bahrain Crown Prince Salman bin Hamad Al Khalifa. Trump said he won’t fire Powell, but added that he thinks Powell’s renovation of the Federal Reserve building is a multi-billion-dollar boondoggle littered with cost overruns. 

The president added that ‘Too Late’ Powell will remain in his position unless there’s fraud regarding that home improvement project. 

Trump can’t fire Powell, nor can Congress. Though never underestimate the presidential power of the bully pulpit, and making political ground untenable for people who think they’re untouchable.