The White House has confirmed that officials are looking into whether President Donald Trump can fire Federal Reserve Chair Jerome Powell.
It comes as the administration accuses the central bank leader of “playing politics” with monetary policy.
Speaking to reporters at the White House, Trump’s economic adviser Kevin Hassett said:
“The president and his team will continue to study that matter.”
Trump is frustrated with Powell’s reluctance to lower interest rates even as inflation has fallen from its Biden-era peaks.
Inflation fell to 2.4% in March, which is just above the Fed’s 2% target.
The Fed hiked interest rates during the Biden presidency to combat historic inflation that surged to 9.1%.
While the Fed started lowering rates last year, Powell is cautious about adjusting them again because of the uncertain impact of Trump’s tariffs.
Raising interest rates discourages borrowing and spending, which eases pressure on inflation.
At the same time, leaving rates raised for too long can slow down the economy.
Trump fired off a broadside on social media criticizing Powell’s timing as “Too Late.”
The president also points to the European Central Bank’s recent decision to cut rates again.
“Too Late should have lowered Interest Rates, like the