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

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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.

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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.

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“Almost every one of them said I should,” Trump said about the lawmakers who had come to talk to him about crypto legislation.

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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.

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Neither source was authorized to publicly discuss the private meeting and they spoke only on condition on anonymity.

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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.

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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.

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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.

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Treasury yields also swiveled in the bond market but remained mostly calm.

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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.

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In a speech Wednesday, Sen. Thom Tillis, R-N.C., said if Powell is dismissed, “you are going to see a pretty immediate response”

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“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.

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Sen. John Kennedy, R-La., said this week that Powell “has done a decent job.”

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“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.”

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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.

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

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