Can Donald Trump Remove FED Chairman Jerome Powell? He May Have Found a Way!

The possibility of U.S. President Donald Trump firing FED Chairman Jerome Powell has come back to the agenda.

National Economic Council Director Kevin Hassett stated today that Trump could dismiss Powell due to cost overruns in the Fed's headquarters renovation project.

It is known that the Trump administration has long pressured Powell to lower interest rates. These pressures have raised concerns about the independence of the FED, and even the possibility of Powell being removed from office had previously seriously shaken the markets. Indeed, at the beginning of the year, such a rumor even led to an increase in interest rates and a wave of selling in the markets.

Although Trump stated last Friday that he would not dismiss Powell, Hassett's statements indicated that this possibility could be back on the table.

The White House intensified pressure by alleging that there is a $700 million budget overrun in the Federal Reserve's renovation project at its Washington headquarters. In this context, the Director of the Office of Management and Budget, Russ Vought, sent a letter to Powell on July 10, raising questions about the project and requesting clarification on its compliance with the law.

Vought's letter gives Powell seven business days. This period coincides with the end of this week and may allow Trump to take action before the next FED meeting, which will start on July 29.

Speaking to ABC channel, Hassett said, "Whether the President will go down this path depends on the responses from the FED." In response to the question of whether Trump can dismiss Powell, he replied, "This issue is being examined, but if there is a justification, yes, he can."

Jerome Powell's term will end in May. During this period, claims that Hassett could succeed Powell are gaining strength. Economic circles consider Hassett, one of the influential figures in the White House, a strong candidate.