Trump Drafted Letter To Fire Fed Reserve Chair, But Says ‘We’re Not Planning On Doing It’

President Donald Trump said on Wednesday that he is “not planning on doing anything” after reportedly writing a letter to fire Federal Reserve Chair Jerome Powell and asking House Republicans on Tuesday night if he should make the move, The New York Times reported.

During a meeting in the Oval Office, Trump reportedly waved a copy of the letter in front of GOP lawmakers before polling them on what he should do, with some in the room voicing approval for Powell’s firing, according to CBS News. A White House official told CNBC that Trump would “likely” fire Powell “soon.”

Rep. Anna Paulina Luna (R-FL) posted on X on Tuesday night, “Hearing Jerome Powell is getting fired! From a very serious source.” In a follow-up post, she added, “I’m 99% sure firing is imminent.”

Trump, however, told reporters in the Oval Office that it’s “highly unlikely” that he would fire Powell.

“Fortunately, we get to make a change in the next eight months or so, and we’ll pick somebody that’s good,” Trump added, appearing to refer to the end of Powell’s term as Fed Chair in May 2026. “We want to see lower interest rates. Our country deserves it. We’re making a lot of money. We’re doing great as a country. We have no inflation, record stock market, record business, record everything.”

.@POTUS on Jerome Powell: "He's too late — he's always been too late… He's a terrible Fed Chair… Fortunately, we get to make a change in the next eight months or so." pic.twitter.com/H8iRMzGWwH

— Rapid Response 47 (@RapidResponse47) July 16, 2025

For months, the president has been pushing the Fed to lower interest rates and blasting Powell. Trump has called Powell, whom he nominated in 2018, a “dummy” and one of the “most destructive” people in government. Last week, Trump said, “I call him every name in the book trying to get him to do something. I do it every way in the book. I’m nasty. I’m nice. Nothing works.”

No president has ever fired the Fed Chair, which is designed to remain independent of political influence. The president does have the authority to fire the chair “for cause,” which the Supreme Court ruled in the 1930s must be over “inefficiency, neglect of duty, or malfeasance in office,” not just policy disagreements.

The Fed has held off on lowering interest rates despite low inflation numbers, citing concern over Trump’s tariffs sparking more inflation. Last month, Powell told Congress that he and many Federal Reserve Board Governors believe that inflation will start rising soon, adding that he was not considering a rate cut at the Fed’s July meeting, which is set to take place on July 29-30, Reuters reported.

On Tuesday, the Bureau of Labor Statistics reported that inflation slightly increased by 0.3% month-over-month and 2.7% year-over-year in June. On Wednesday, the BLS reported that wholesale inflation remained unchanged last month, defying economists’ predictions.