Report: Trump Eyes Yet Another Major White House Shakeup
President Donald Trump’s frustration with Federal Reserve policies has now reached the point where he is privately talking firing Federal Reserve Chairman Jerome Powell, according to a new report.
In a report without named sources, Bloomberg said Trump has talked of firing Powell because of an interest hike the Fed approved this week along with continued stock market losses.
The report said that removing Powell is not a done deal and that many advisers are urging Trump to keep Powell in place.
This week, the Federal Open Market Committee voted to raise the baseline interest rate range from 2.25 percent to 2.5 percent, something Trump opposed.
“We think this move was appropriate for what is a very healthy economy,” Powell said when the rate hike was announced, The New York Times reported.
Powell has indicated the Fed wants to control inflation without cutting off the economic expansion that has taken place since Trump took office.
Chairs of the Federal Reserve are nominated by the president, but removing them has little precedent.
Powell’s predecessor, Janet Yelle, resigned in 2017.
If Trump moves to oust Powell, it will be in the context of a vast White House shakeup that includes the departure of Defense Secretary James Mattis, Chief of Staff John Kelly and Interior Secretary Ryan Zinke.