Trump weighs dismissing Fed Chair Powell, White House aide says

United States President Donald Trump and his administration are exploring whether they can remove Federal Reserve Chair Jerome Powell, White House economic adviser Kevin Hassett said Friday, amid escalating tensions between the president and the central bank.

“The president and his team will continue to study that matter,” Hassett told reporters when asked if Trump was considering firing Powell, just a day after the president issued a fresh wave of criticism at the Fed chief.

Although the U.S. president lacks direct authority to fire a sitting Federal Reserve chair, Trump could launch a complex legal process to try to oust Powell by demonstrating “cause” — a standard that has not been tested in modern U.S. history.

Combating inflation or supporting employment

The feud intensified after Powell warned that Trump’s aggressive tariff policies could drive up consumer prices, slow economic growth, and potentially place the Fed in a difficult position — forced to choose between combating inflation and supporting employment.

On Thursday, Trump publicly signaled that he might take action. “I’m not happy with him. I let him know it, and if I want him out, he’ll be out of there real fast, believe me,” Trump said.

Despite nominating Powell during his first term, Trump has repeatedly attacked the Fed chair over interest rate decisions and what he perceives as politically motivated economic management.