President Donald Trump reportedly drafted a letter to fire Federal Reserve Chairman Jerome Powell, according to multiple sources familiar with internal discussions. The revelation comes amid growing tension between the White House and the central bank over interest rate policy.
On Tuesday night, Rep. Anna Paulina Luna indicated that Powell’s removal could be imminent, further stoking speculation that Trump is ready to take decisive action if the Fed continues to ignore his economic agenda.
Calls for Powell’s resignation have intensified in recent weeks, with President Trump taking to Truth Social to blast the Fed Chair. “Too Late” should resign immediately!!!” Trump wrote last week, slamming Powell for keeping rates high despite economic pressure.
Tensions escalated after Powell appeared to publicly rebuke Trump’s policies, suggesting last Tuesday that interest rates would have likely been lowered already if not for the tariffs the president imposed. His remarks were seen as a thinly veiled criticism of Trump’s America First trade strategy.
Trump, now back in the Oval Office, has made no secret of his frustration with the Federal Reserve’s reluctance to cut rates. He inherited soaring inflation, sluggish economic growth, and high unemployment from the Biden administration — a trifecta of problems he blames on mismanagement and reckless spending. Yet despite the Fed’s ability to ease economic pressure through rate reductions, Powell has refused to act since Trump was sworn in earlier this year.
Trump says he has "no plans" to fire Fed Chair Jerome Powell. pic.twitter.com/eStsJqrEL7
— Resist Times (@resistupdates) July 16, 2025
On Wednesday, Trump addressed the rumors directly, stating that while tensions remain high, it is “highly unlikely” that he will fire Powell at this time. The comment appears to be an effort to calm markets while still signaling his dissatisfaction with the central bank’s direction.
The drama over Powell’s fate underscores the broader fight over monetary policy and Trump’s push to realign U.S. economic levers with his populist agenda. Whether Powell stays or goes, the pressure from the White House to slash interest rates is only expected to intensify in the coming weeks.