US president Trump: If Powell doesn't leave, I have to fire him

U.S. ​President Donald ‌Trump said on ​Wednesday ​that if current ⁠Federal ​Reserve chair ​Jerome Powell does not ​leave ​the bank after ‌a ⁠new Fed chair is ​installed, ​he ⁠will have ​to ​fire ⁠him.

Trump had appointed Powell in 2017, but later became increasingly frustrated when the Federal Reserve raised interest rates during economic volatility and a falling stock market.

Trump believed that these rate hikes were harming economic growth. During this period, media reports claimed that Trump told his advisers in private that if Powell did not resign, he might have to fire him. 

However, under U.S. law, a president cannot directly remove the Chair of the Federal Reserve simply because of policy disagreements—the Fed is an independent institution, and the chair’s four-year term is legally protected unless there is a clear, legally defined cause for removal.

Despite Trump’s anger, no official order to dismiss Powell was ever issued, and advisers also warned that attempting to fire him could damage global financial confidence. 

Ultimately, Powell remained in his position and continued to oversee monetary policy, and the conflict eventually settled without any formal action taken against him.