Overview
- At a July 16 White House briefing, Trump said he had considered dismissing Jerome Powell but called the possibility “very improbable.”
- He criticized Powell for not lowering interest rates and questioned the Fed’s decision to spend $2.5 billion on Washington headquarters renovations.
- The White House confirmed Trump met with Republican lawmakers to discuss Powell’s removal but stressed no action is imminent.
- Financial markets reacted with a 1% drop in the dollar, 30-year Treasury yields rising to about 5.07%, and volatility in gold and equity indices.
- Goldman Sachs CEO David Solomon and senior Republican senators warned that ousting the Fed chair could harm markets and face legal barriers to removing him.