Investing.com -- President Trump has been privately considering the dismissal of Federal Reserve Chair Jerome Powell for several months, according to a report from the Wall Street Journal, citing individuals familiar with the situation. However, the final decision on whether to remove him before his term concludes next year remains uncertain.
These discussions have taken place at Mar-a-Lago, the president’s private Florida club, where Trump has conversed with Kevin Warsh, a former Fed governor. The possibility of firing Powell before the end of his term and potentially appointing Warsh as his successor was brought up in these meetings, the sources stated.
Warsh has counseled against dismissing Powell and has made a case for allowing the Fed chair to finish his term without disruption. These discussions with Warsh continued into February, while other individuals close to the president have spoken to Trump about terminating Powell as recently as the beginning of March.
During a meeting in the Oval Office on Thursday, Trump expressed his belief that he possesses the authority to dismiss Powell. "If I want him out, he’ll be out of there real fast, believe me," Trump stated. The president also voiced his dissatisfaction with Powell, accusing him of manipulating interest rates for political reasons.
Any attempt by Trump to remove Powell would likely end up in the Supreme Court. This could cast a shadow over Powell’s potential replacement and the possibility of the Fed chair being fired over a policy disagreement could destabilize financial markets.