Donald Trump 'highly unlikely' to fire Federal Reserve's Jerome Powell
Trump confirmed that in a White House meeting Tuesday night with about a dozen House Republicans he had discussed the 'concept' of dismissing Powell, long a target because of his refusal to lower interest rates as Trump wants.
'Almost every one of them said I should,' Trump said about the lawmakers who had come to talk to him about crypto legislation.
He indicated he was leaning in that direction, according to a White House official. During that session, Trump waved a letter about firing Powell, but a person familiar with the matter said it was essentially a prop drafted by someone else and that the Republican president has not drafted such a letter.
Neither source was authorized to publicly discuss the private meeting and they spoke only on condition on anonymity.
Trump made his comment about being 'highly unlikely' to dismiss Powell — 'unless he has to leave for fraud' — during an Oval Office meeting with Salman bin Hamad Al Khalifa, the crown prince of Bahrain.
In recent days, White House and administration officials have accused Powell of mismanaging a $2.5 billion renovation project at the Fed, adding to months of efforts by Trump try to rid himself of the politically independent central banker.
U.S. stocks were shaky as Trump spoke about Powell on Wednesday. The S&P 500's modest gain in the morning became a drop of 0.7% after initial reports that the president may fire the Fed chair. Stocks then trimmed their losses after Trump's later comment.
Treasury yields also swiveled in the bond market but remained mostly calm.
Those at the White House meeting were among the more far-right lawmakers, including members of the House Freedom Cause whose views are not always shared by other Republicans. In the Senate, Republicans have taken a more guarded approach. Some have backed Powell's performance at the Fed as they await an inspector general's review of the construction project.
In a speech Wednesday, Sen. Thom Tillis, R-N.C., said if Powell is dismissed, 'you are going to see a pretty immediate response'
'If anybody thinks it would be a good idea for the Fed to become another agency in the government subject to the president, they're making a huge mistake," said Tillis, who has announced that he is not running for reelection.
Sen. John Kennedy, R-La., said this week that Powell 'has done a decent job.'
"I don't think he's been perfect,' he said, adding that there have been times they disagreed, but 'I do believe that the chairman is calling them like he sees them.'
Republicans on the House Financial Services Committee had been scheduled to meet with Powell on Wednesday evening in a gathering set months ago, but it was abruptly canceled due to votes in the House, according to a committee aide granted anonymity to discuss a private meeting.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
26 minutes ago
- Hans India
With resilient overall Q1 growth, Indian economy 'steady as she goes' in FY26: Centre
New Delhi: The first quarter of FY26 presents a picture of resilient domestic supply and demand fundamentals and with inflation remaining within the target range and monsoon progress on track, the domestic economy enters the second quarter of FY26 on a relatively firm footing, Finance Ministry's 'Monthly Economic Review for June 2025' said on Monday, adding that the economy has the look and feel of "steady as she goes" as far as the current fiscal (FY26) is concerned. India's macroeconomic fundamentals have remained resilient. Aided by robust domestic demand, fiscal prudence and monetary support, India appears poised to continue as one of the fastest-growing major economies, "with various forecasters, including S&P, ICRA, and the RBI's Survey of Professional Forecasters, projecting GDP growth rates for FY26 in the range of 6.2 per cent and 6.5 per cent", the monthly document emphasised. India's financial markets have demonstrated notable resilience, primarily driven by strong domestic investor participation. This resilience is further underpinned by the robust health of the banking sector, as banks have strengthened their capital and liquidity buffers while improving their asset quality. "Reflecting these improvements, the GNPA ratio and the NNPA ratio of the scheduled commercial banks are at a multi-decade low of 2.3 per cent and 0.5 per cent, respectively, complemented with strong earnings," the report said. India's economic activity in Q1 FY26 was underpinned by strong domestic demand, robust services growth, and encouraging signs from manufacturing and agriculture. Agricultural activity received a significant lift from a favourable southwest monsoon, which arrived early and has so far delivered above-normal rainfall. Fertiliser availability and reservoir levels are more than adequate, suggesting a strong outlook for the kharif sowing and harvest and consequent rural income and demand. "The agriculture sector's steady performance continues to serve as a stabilising pillar for the broader economy and bolsters the rural outlook. According to NABARD's rural sentiment survey, over 74.7 per cent of rural households expect income growth in the coming year, the highest since the survey's inception," the Economic Review noted. It further stated that the Indian economy in mid-2025 presents a picture of cautious optimism. While geopolitical tensions have not elevated further, the global slowdown, particularly in the US (which shrank by 0.5 per cent in Q1 2025), could dampen further demand for Indian exports. Continued uncertainty on the US tariff front may weigh on India's trade performance in the coming quarters. Slow credit growth and private investment appetite may restrict acceleration in economic momentum, the report highlighted. "In the medium term, given the ongoing momentous shifts in global supply chains in the areas of semiconductor chips, rare earths and magnets, India has its task cut out," it added.
Indian Express
26 minutes ago
- Indian Express
‘Today, we're 4th largest economy…days are over when India was considered a soft state': Sudhanshu Trivedi
Delivering the 4th Balramji Dass Tandon Memorial Lecture at Panjab University, BJP Rajya Sabha MP Sudhanshu Trivedi said Sunday the world is watching India's rise closely but there is no need to fear it, as he underlined the nation's economic, strategic and cultural ascent under the leadership of Prime Minister Narendra Modi. Speaking on the theme 'Why a Strong India Scares the World', Trivedi underscored that India now accounts for 48 per cent of global digital transactions, has 50 per cent of its installed power capacity from clean energy, and is the fastest-growing economy among the major countries. Referring to the International Monetary Fund (IMF), the BJP national spokesperson said India's contribution to global growth is going to be 15 per cent, adding that according to Morgan Stanley, India will become the engine of global growth in the next decade. 'The Word Bank has stated that 16 crore people have been lifted out of extreme poverty. Today, we are the fourth largest economy in the world,' he said. Trivedi also noted India's co-chairing of the Global AI Summit as a marker of its growing international leadership. Quoting PM Modi, Trivedi stressed that 'this is the right time' for India, and those attempting to create confusion will not succeed. India's strength, he said, lies not only in its economic, military and intellectual capabilities but also in its spiritual and cultural power — unique assets that position India to shape the world order. He cited the UN resolution on yoga, co-sponsored by 177 countries, as a strong example of India's growing soft power. On the country's strong response to terrorism, he spoke of surgical strikes, the Balakot airstrike, and Operation Sindoor, emphasising that New India does not tolerate terror. The Operation Sindoor proved that Pakistan's nuclear threats do not work, marking the end of India's era as a soft state, the BJP MP said. 'Those days are over when India was considered a soft state,' he said. Explaining the communication between India's External Affairs Minister (S Jaishankar) and his Pakistani counterpart (Muhammad Ishaq Dar), Trivedi said the Operation Sindoor began at 1:05 am and concluded at 1:27 am. Pakistan was informed at 1:30 am, and it was clarified that the strike was against terrorists, not Pakistan's military installations, he said. He described it as a trap that Pakistan failed to recognise, which exposed the collusion of state and non-state actors within the neighbouring country. Trivedi also said that the world is seeking alternatives to China for industrial investment and that India is best positioned to offer this. India is the only country in the world that has received the S-400 missile system from Russia and advanced drone systems from the US, he said. Russia does not supply arms to any QUAD member nation, while the US does not supply defence equipment to any country receiving arms from Russia, which proves India's tactfulness, he said. On trade relations, Trivedi said the UK was more eager for a Free Trade Agreement (FTA) than India, reflecting the country's rising economic stature. 'India is steadily becoming an economic superpower,' he said. Describing Balramji Dass Tandon as a 'Path Pradarshak Deepak' (guiding lamp), Trivedi paid rich tributes to him for his contributions to the RSS, BJP and the region. Lauding Tandon for his unwavering dedication to public service and organisational discipline, he referred to him as the 'foundation stone of the bright building which we are seeing now'. Speaking on the occasion, Punjab BJP working president Ashwani Sharma supported the demand to bestow a Padma award posthumously on Balramji Tandon for his contributions to society and the nation. Sharma also shared his personal experience of working with him. The Panjab University Vice-Chancellor, Prof Renu Vig, highlighted the contribution of Panjab University both before and after India's independence, and spoke about the unique character of the university, which has continued its journey from being the fourth oldest university to becoming a modern inter-state body corporate, with several advanced facilities and notable achievements to its credit. Sanjay Tandon, president of the host foundation and son of Balramji Tandon, highlighted the teachings and high moral values of his father. He shared various examples from the 1965 and 1971 wars and the Covid-19 pandemic, drawing parallels with his father's values and underlining the importance of probity and being a 'karma yogi' in public life.
&w=3840&q=100)
First Post
26 minutes ago
- First Post
Mike Johnson calls for 'great pause' on a Ghislaine Maxwell pardon, pushes for life sentence instead
US Speaker of the House Mike Johnson disagreed with Republicans who are floating the idea of granting a pardon or commutation to Ghislaine Maxwell as the Epstein scandal continues to rock the White House. read more US Speaker of the House Mike Johnson disagreed with Republicans who are floating the idea of granting a pardon or commutation to Ghislaine Maxwell as the Epstein scandal continues to rock the White House. While speaking to NBC News, Johnson said that he would have a 'great pause' about taking such measures. The remarks from the Republican speaker are coming at a time when many of the House representatives from his party suggested that the option to pardon Maxwell should be considered as part of an effort to obtain more information about Jeffrey Epstein's crimes. For weeks, US President Donald Trump and his allies, including Johnson himself, have been under immense pressure to disclose more information about Epstein. STORY CONTINUES BELOW THIS AD Johnson's take on the matter came after Todd Blanche, the deputy attorney general, met with Maxwell, who is serving a 20-year prison sentence for sex trafficking, over two days last week. The former British socialite was Epstein's close confidante for years and his partner-in-crime, literally. The case became more complicated after Epstein killed himself in jail in 2019. I think she should have a life sentence: Johnson While speaking to NBC News on the matter, the House Speaker pushed for a life sentence for Maxwell instead. 'If you're asking my opinion, I think 20 years was a pittance. I think she should have a life sentence at least. I mean, think of all these unspeakable crimes,' he said. 'It's hard to put into words how evil this was, and that she orchestrated it and was a big part of it, at least under the criminal sanction, I think, is an unforgivable thing. So again, not my decision, but I have great pause about that, as any reasonable person would,' he added. When pressed further about whether he would favour a pardon, Johnson deferred to Trump. 'Obviously, that's a decision of the president. He said he had not adequately considered that. I won't get it in front of him. That's not my lane,' he said. It is pertinent to note that House Representative Thomas Massie, a Kentucky Republican who has been pushing for disclosure of more Epstein information, said a pardon should be on the table for Maxwell. 'That would be up to the president. But if she has information that could help us, then I think she should testify. Let's get that out there. And whatever they need to do to compel that testimony, as long as it's truthful, I would be in favour of,' he told Welker on Meet the Press. STORY CONTINUES BELOW THIS AD California Democrat Ro Khanna, who has joined Massie's effort to release more information, said he did not support a pardon for Maxwell, who was charged with perjury in connection with a civil deposition in 2016. However, prosecutors did not move forward with those charges once they obtained her sex-trafficking conviction. 'I'm concerned that the deputy attorney general, Todd Blanche, is meeting with her supposedly one-on-one. Look, I agree with Congressman Massie that she should testify. But she's been indicted twice on perjury. This is why we need the files. This is why we need independent evidence,' Khanna told NBC News. Hence, it will be interesting to see how the Trump team would approach the matter.
