NATIONAL NEWS

Trump says he’s “highly unlikely” to fire Fed’s Powell after floating that idea in private

Jul 16, 2025, 10:44 AM

President Donald Trump listens during a meeting with Bahrain's Crown Prince Salman bin Hamad Al Kha...

President Donald Trump listens during a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa in the Oval Office of the White House, Wednesday, July 16, 2025, in Washington. (AP Photo/Alex Brandon)
Credit: ASSOCIATED PRESS

(AP Photo/Alex Brandon)

WASHINGTON (AP) — President Donald Trump said Wednesday that he was “highly unlikely” to fire Federal Reserve Chair Jerome Powell, a public statement made less than 24 hours after suggesting in a private meeting that he was leaning in favor of dismissing the head of the nation’s central bank.

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.

__

AP Business Writer Stan Choe in New York, AP Congressional Correspondent Lisa Mascaro and Associated Press writer Stephen Groves contributed to this report.

National News

fort stewart georgia shooting...

Associated Press

5 soldiers shot before arrest made at Army’s Fort Stewart in Georgia

Five soldiers were shot Wednesday at Fort Stewart in Georgia, leading to a lockdown at the Army base before the shooter was arrested, officials said.

8 hours ago

Titan...

Associated Press

Titan sub disaster was caused by weak safety and oversight, Coast Guard says

The Coast Guard said the Titan sub disaster was caused by weak safety and oversight.

1 day ago

Texas...

Associated Press

Why dozens of Democrats left Texas and how Republicans want to punish them

Dozens of Democratic state lawmakers in Texas have scattered to points across the country.

2 days ago

The U.S. Capitol, Wednesday, July 16, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)Credit...

Associated Press

August recess can’t hide tensions ahead for Congress on spending and Trump nominations

WASHINGTON (AP) — Lawmakers have left Washington for the annual August recess, but a few weeks of relative quiet on the U.S. Capitol grounds can’t mask the partisan tensions that are brewing on government funding and President Donald Trump’s nominees. It could make for a momentous September. Here’s a look at what’s ahead when lawmakers […]

2 days ago

FILE - Damage can be seen to a front window as law enforcement officers work the scene of a shootin...

Associated Press

Arkansas man sentenced to life without parole for 2024 mass shooting at grocery store

FORDYCE, Ark. (AP) — An Arkansas man who killed four people and injured 11 others last year in a mass shooting at a grocery store was sentenced Monday to life in prison without parole. A state judge sentenced Travis Eugene Posey to four life sentences for each count of capital murder. Posey was also sentenced […]

2 days ago

Sen. Mitch McConnell, R-Ky., speaks at the annual Fancy Farm picnic Saturday, Aug. 2, 2025, in Fanc...

Associated Press

Mitch McConnell’s legacy comes under fire in Kentucky race to replace him in the Senate

CALVERT CITY, Ky. (AP) — Republican Nate Morris had deftly warmed up a crowd of party faithful, gushing about President Donald Trump and recounting his own life’s journey — from hardscrabble childhood to wealthy entrepreneur — when he turned his attention to the man he wants to replace, Sen. Mitch McConnell. That’s when things got […]

2 days ago

Trump says he’s “highly unlikely” to fire Fed’s Powell after floating that idea in private