U.S. President Donald Trump is said to be considering whether to fire U.S. Federal Reserve Chair Jerome Powell.
White House economic adviser Kevin Hassett said the White House is “actively considering” whether to remove the chairman of the U.S. Federal Reserve before his current term expires in May 2026.
Economists and market analysts have warned that firing Powell would call into question the independence of the U.S. central bank and likely cause further turmoil in financial markets.
Hassett’s comments come after Trump reignited his feud with Powell, demanding that he cut interest rates immediately and accusing the Fed chair of “playing politics” by not lowering rates to stimulate the U.S. economy and boost the stock market.
Trump has repeatedly threatened to fire Powell, and recently said he wanted to remove the Fed chair “real fast.”
The latest row comes after Powell said in a speech that President Trump’s tariffs “complicate” the central bank’s job and that interest rates are likely to remain at current levels until there is greater clarity on the economy’s direction.
Those comments led to a steep selloff in U.S. financial markets, angering President Trump.
Following President Trump’s re-election last fall, Powell said that the law does not allow for his removal and that he would not leave as Fed Chair if asked to do so by President Trump.
Powell has said that he intends to serve out his current term to the end in May 2026.
Ironically, it was President Trump who appointed Powell as Fed Chair during his first term in office, which ran from 2016 to 2020.
After a series of interest rate cuts last fall, the U.S. Federal Reserve has kept its benchmark policy rate on hold in its current range of 4.25% to 4.50% since last December.
The American central bank is next scheduled to decide on interest rates May 7.
