Drafting and Denying a "Dismissal Letter": Trump May Next Set His Sights on the Federal Reserve Board

According to Jinse Finance, tensions between Trump and Powell have reached a new peak. Reports indicate that Trump had drafted a letter to dismiss Powell and had even sought advice from senior Republican leaders. However, after news of this leaked, Trump abruptly changed his stance, stating he did not intend to fire Powell. Citing sources familiar with the matter, a Fox News reporter noted that this vacillation reflects internal disagreements within the Trump administration over the legality of removing the Federal Reserve Chair. Perhaps now is not the right time. Trump has hinted at possible fraud related to the renovation of the Federal Reserve building, though this claim seems somewhat far-fetched. His sharper criticism was: “The Federal Reserve Board simply has not done its job.” This statement may signal a shift in his strategy—from directly pressuring Powell to targeting the entire Federal Reserve Board. Currently, Trump already has two allies on the Board: Bowman and Waller. The next step may be to win the support of more Board members. There is more than one way to achieve a rate cut, and it does not necessarily require Powell’s vote, as long as a majority of voting members are in favor.