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'Fed head Jerome Powell is getting fired': Florida Congresswoman Anna Paulina Luna drops bombshell
This comes amid Trump's repeated displeasure with Powell, which stems from the POTUS repeatedly urging the Fed to cut its key rate.
US Fed chair Jerome Powell is reportedly getting fired, Florida Congresswoman Anna Paulina Luna said on X (formerly Twitter).
“Hearing Jerome Powell is getting fired! From a very serious source,” she said, adding, “I’m 99% sure firing is imminent.”
The Trump-Powell tiff
This comes amid Trump's repeated displeasure with Powell, which stems from the POTUS repeatedly urging the Fed to cut its key rate, which he says would save U.S. taxpayers billions of dollars on interest costs on the federal government’s massive debt, and boost the economy.
The fight has threatened the Fed's traditional independence from politics, though, since the Supreme Court signalled the president can't fire the chair, financial markets haven't responded to Trump's criticism.
Powell also said that without tariffs, the Fed would probably be cutting its key rate right now. The central bank went “on hold” after it saw how large Trump's proposed tariffs were, Powell said, and economists began forecasting higher inflation.
Meanwhile, Powell did not rule out a rate cut at the Fed's next policy meeting on July 29-30.
“I wouldn't take any meeting off the table or put it directly on the table,” Powell said. Most economists, however, expect the Fed won't reduce rates until September at the earliest.
Trump, doubling down on the attack, targeted Powell and the entire Fed governing board, which participates in interest-rate decisions.
“The board just sits there and watches, so they are equally to blame,” Trump said.
Also Read | Jerome Powell ‘considering resigning’ amid Dan Bongino rumors; officials issue first statement
Can the President fire Powell?
While Powell has said that the President cannot fire him, legal experts differ.
As per the 1913 Federal Reserve Act, the Fed is meant to operate independently, shielded from any political pressure, including disagreements with the leaders over policy.
This was also supported by a 1930s US Supreme Court ruling stating that a Fed chair can only be removed for serious reasons, such as neglect of duty, misconduct, or inefficiency.
Russel Morgan from The Morgan Legal Group, stated that any attempts to fire Powell would likely trigger a protracted legal battle.
Powell's current term as Fed chair ends in May 2026.
(With AP inputs)
