Trump says he doesn't plan to fire Fed Chairman Powell, despite buzz

President Trump on Wednesday said he has no plans to fire Federal Reserve Chairman Jerome Powell as rumors swirl about a move against the central bank boss.

Firing Mr. Powell, whose term ends in May, would be a seismic move that could rattle markets and set off a legal battle over the central bank’s independence.

“No, I’m not talking about that. Fortunately, we get to make a change in the next eight months or so,” Mr. Trump said during a meeting with Bahrain’s leader in the Oval Office. “I haven’t drafted a [resignation] letter.”

At the same time, Mr. Trump said he won’t rule out anything, claiming there could be “fraud” around a renovation plan at the Fed’s building in Washington.

He also confirmed reports that he asked GOP lawmakers whether he should fire Mr. Powell, and the lawmakers said yes.

Mr. Trump has unloaded on Mr. Powell for months over the Fed’s reluctance to lower interest rates.

“He’s always been too late, hence his nickname ‘Too Late,’” Mr. Trump said. “I think he’s done a terrible job; he’s costing us a lot of money.”

The bank says it's waiting to see if inflation heats up amid Mr. Trump’s tariffs. 

The White House says existing levies haven’t had a profound impact on prices, so Mr. Powell is costing the U.S. and its borrowers dearly by refusing to budge on rates.

Mr. Trump has repeatedly downplayed rumors he would fire Mr. Powell before his term concludes, though Republicans and others continue to raise the prospect.

“Hearing Jerome Powell is getting fired! From a very serious source,” Rep. Anna Paulina Luna, Florida Republican, said this week on X.

Mr. Trump’s allies piled on by questioning the cost of renovations at the Fed’s building in Washington.

The president complained about the cost Wednesday and called Mr. Powell a “knucklehead.”

Mr. Powell, meanwhile, has said his firing isn’t permitted under the law, setting up a potential fight.

Investors might be spooked by the firing, since the Fed is supposed to make decisions outside the influence of politics.