Republican Senators Warn Trump: Don’t Fire Fed Chair Powell/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump is considering firing Federal Reserve Chair Jerome Powell, triggering warnings from Republican senators. GOP lawmakers caution that removing Powell could destabilize markets and damage the central bank’s independence. While some conservatives support Trump’s frustration, others urge him to tread carefully.
Trump vs. Powell Quick Looks
- Trump signals openness to firing Fed Chair Jerome Powell.
- GOP senators caution move could harm economic stability.
- Thom Tillis warns against politicizing the central bank.
- Mike Rounds says firing Powell would “cast a spell” on markets.
- Bernie Moreno calls Powell “most incompetent” Fed chair ever.
- Legal experts say firing Powell would trigger litigation.
- Trump supporters in Congress split on whether firing is possible.
- Powell under fire for Fed’s $2.5 billion renovation project.
- Fed independence protected by law; chair can only be removed “for cause.”
Republican Senators Warn Trump: Don’t Fire Fed Chair Powell
Deep Look
WASHINGTON (AP) — Republican senators are cautioning President Donald Trump against firing Federal Reserve Chair Jerome Powell, amid mounting speculation and behind-the-scenes polling from the White House on removing the central banker. The warnings underscore growing concern within the GOP that such a move would rattle global markets and damage the long-standing independence of the U.S. Federal Reserve.
Trump has publicly wavered on whether he’ll dismiss Powell, recently saying it’s “highly unlikely” — but adding “unless he has to leave for fraud,” a comment widely seen as a possible legal pretext.
GOP Senators Push Back on Firing Rumors
Sen. Thom Tillis (R-N.C.), who has clashed with Trump in the past and is not seeking re-election, took to the Senate floor to defend Powell. He warned that turning the Fed into another executive agency under presidential control would be “a huge mistake.”
Tillis told the AP that firing Powell would primarily hurt average Americans with modest savings and retirement accounts. “It’s the little guys like me that grew up in trailer parks with a few thousand in a 401(k) that lose,” he said.
Sen. Mike Rounds (R-S.D.) echoed that sentiment, warning that any hint of political interference would taint the Fed’s credibility. “The markets expect an independent central bank,” he said.
Trump’s Allies Offer Contrasting Views
Not all Republicans are opposed to the idea. Sen. Bernie Moreno (R-Ohio), a far-right Trump ally, slammed Powell as “the most incompetent, worst Federal Reserve chairman in American history” and said he should resign. Moreno added that Trump is “being deliberate” in weighing his options, but made it clear he would support Powell’s ouster.
Trump reportedly floated the idea during a closed-door meeting with about a dozen House Freedom Caucus members on Tuesday, with some encouraging the move.
Legal Uncertainty Surrounds Firing
While some conservatives back Trump’s frustrations, they also acknowledge legal limits. House Speaker Mike Johnson (R-La.) told reporters he’s unsure whether the president even has the authority to fire the Fed chair.
House Financial Services Chair French Hill (R-Ark.) noted that while he shares Trump’s concerns over Powell’s leadership, the Federal Reserve Act only permits firing the chair “for cause,” not at-will — a higher threshold than most federal appointments.
The Trump administration is reportedly exploring whether Powell’s involvement in a $2.5 billion renovation of the Fed’s headquarters could be used as grounds for dismissal. Sen. Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, blasted that rationale.
“When his initial attempts to bully Powell failed, Trump and Republicans in Congress suddenly decided to look into how much the Fed is spending on building renovations,” Warren said. “Give me a break.”
Transparency vs. Political Targeting
In response to pressure, Powell sent a letter to Congress detailing the renovation project. Senate Banking Committee Chair Tim Scott (R-S.C.) acknowledged the letter but said only that it “supports transparency.”
Sen. John Kennedy (R-La.), a senior member of the banking panel, said he doubted the project constituted valid grounds for firing and warned that such a move would be “litigated.”
Kennedy, while acknowledging Trump’s frustrations over the Fed’s reluctance to lower interest rates, emphasized: “I think it’s very important the Federal Reserve remains independent.”
Avoiding Economic Turmoil
Even among those sympathetic to Trump’s grievances about Powell’s performance, there’s hesitation. Moreno, despite calling for Powell’s resignation, admitted the potential political and economic fallout of a forced removal might be too great.
“I don’t think we should put the country through any of that,” he said.
While Powell’s term ends in early 2026, Trump could simply opt to appoint a new chair rather than fire him — avoiding legal complications and market panic.
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