President Donald Trump on Wednesday suggested that the chairman of the Federal Reserve is under investigation for fraud.
During a joint press conference with the prime minister of Bahrain, the president laid into Fed Chair Jerome Powell for refusing to lower interest rates and other matters. He stated that it is “unlikely” that he will fire Powell, but intimated that the chair might have to step down over issues with fraud related to renovations to the Federal Reserve building.
This prompted a reporter to ask, “Are you saying you want to investigate the fed chair for fraud related to this renovation?”
“Well, I think he’s already under investigation. He spent far more money than he was supposed to on rebuilding,” Trump replied.
"I think he's, you know, he's got some problems," Trump continued, pointing out that there are "many people" who would love to take Powell’s position as fed chair.
Trump slammed Powell for delaying cuts in interest rates that could have boosted the economy, calling him a “terrible fed chair.” The president further claimed Poweel only slashed interest rates “just before the election to try and help [former Vice President Kamala Harris] or Biden, whoever the hell it was.”
The president stated that lowering interest rates could save the US “a trillion dollars a year in interest.”
Trump slammed Powell over the massive renovation project, saying he is “doing a little renovation for $2.5 billion of the Fed” and suggested “there could be something to that.”
While the president indicated that he is not planning to fire Powell, he is considering other candidates for the position like Scott Bessent and Kevin Hassett. “Scott’s doing a very good job” and “Kevin is fantastic, too,” Trump said.
🚨 JUST IN: President Trump says he is "not planning" to fire Jerome Powell following reports saying he is considering it, but says it could happen if Powell committed "FRAUD" under the $2.7B renovation
— Eric Daugherty (@EricLDaugh) July 16, 2025
"I don't rule out anything, it's highly unlikely, unless he has to leave for… pic.twitter.com/1DnLIstKiB
CBS News reported that the president consulted with House Republicans on possibly firing Powell. Several sources told the news outlet that Trump was leaning towards terminating him.
Mr. Trump on Wednesday confirmed to reporters in the Oval Office that he spoke to lawmakers about ousting Powell.
"I talked to them about the concept of firing him. I said, 'What do you think?' Almost all of them said I should. But I'm more conservative than they are," he said.
Sources told CBS News that Mr. Trump made the comments to the Republican House members in the Oval Office on Tuesday night, after they blocked a procedural vote that would have advanced cryptocurrency legislation in the House favored by Mr. Trump.
The idea of a president removing a Fed chair is legally untested — federal law says the chair can only be fired "for cause." The action could have serious negative effects on financial markets.
Trump nominated Powell in late 2017. Former President Joe Biden nominated him again four years later. His current term ends on May 15, 2026.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
Help us continue to report on the president’s economic successes and combat the lies of the Democrats. Join TownhallVIP and use promo code FIGHT to get 60% off your membership.
Join the conversation as a VIP Member