Trump vs the Fed
The topsy-turvy saga between Trump and Fed Chair Powell reached a new level today. Reports emerged that Trump had drafted a letter to fire Powell and even sought input from GOP leaders about the move. But after the leaks hit the wires, Trump reversed course—saying he wasn’t looking to fire “Too-Late” or “Knucklehead” Powell after all.
According to FBN’s Gaspirino who cited sources, this flip-flop reflects internal divisions within the administration over the legality of removing a Fed Chair.
Maybe it’s just too early for the official “You’re Fired” letter.
Trump may be looking for a justification, which he hinted at by suggesting there could be fraud related to the costly renovation of Federal Reserve buildings. But that seems like a stretch—Powell hardly fits the profile of a “fraud guy.”
Renovation overruns that are also influenced by historic preservation requirements aren’t exactly grounds for dismissal either.
One of Trump’s more pointed remarks was that “the board is not doing its job.” That might signal a shift in strategy—from pressuring Powell directly (who has just one vote) to targeting the broader Board of Governors, where each member holds the same voting power. Trump already has allies in Bowman and Waller. The next move might be to pressure—or charm—the remaining board members in hopes of swaying future policy decisions.
There is more than one way to cut rates and that does not have to include the chairman’s vote, but just a majority of the voting members..
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