President Trump recently indicated to leading GOP members that he might dismiss Federal Reserve Chairman Jerome Powell.
Sources confirmed earlier reports from Bloomberg News, citing individuals familiar with the discussions.
An insider within the administration, speaking on the condition of anonymity, confirmed the nature of Trump’s consultations with congressional Republicans.
According to two sources, Trump expressed that he was considering firing Powell during a meeting. “They were supportive of that notion. The president mentioned it might happen soon,” one source stated.
This development comes amid criticism of Powell for not lowering interest rates in response to Trump’s persistent demands.
Another senior official criticized Powell regarding a recent Senate Banking Committee meeting, describing his testimony as “misleading” concerning a $2.5 billion renovation project at the Fed’s headquarters.
Opponents have likened the lavish project to a royal residence from the French monarchy.
In response to inquiries from GOP lawmakers, including Senate Banking Committee Chairman Tim Scott, Powell refuted the publication’s claims about the upscale renovations.
The 72-year-old dismissed the coverage as “misleading and inaccurate,” despite clear contradictions found in the project’s own planning documents, which received approval in 2021.
Elon Musk previously labeled the Post’s article on the renovations as “an eyebrow-raiser” worthy of further investigation.
Documents submitted to the National Capital Planning Committee directly contradicted Powell’s statements during the Senate Banking Committee session.
As inflation surged under the Biden administration, the renovation project was approved during the peak of the COVID-19 pandemic.
This project is primarily funded by U.S. taxpayers, with costs surpassing $220 billion, considering the Fed’s increasing losses.
When the central bank generates profits, those funds are directed to the Treasury Department, contributing to defense, Medicare, and Social Security expenditures.
Another administration official mentioned to the Post that he believes the Fed may have violated planning regulations by failing to submit necessary revisions to the National Capital Planning Commission.
The Federal Reserve Act stipulates that the president can dismiss Fed officials for being “inefficient,” which can imply “fraud” regarding significant mismanagement of public funds or legal violations.
A spokesman for the White House declined to comment, while a Fed spokesman pointed to a prior statement indicating Powell’s clarity on his term expiring in May next year.
