President Donald Trump has been privately discussing the possibility of firing Federal Reserve Chair Jerome Powell, according to a Wall Street Journal report published Thursday, Apr. 17.
The conversations have intensified in recent months as Trump grows increasingly frustrated with Powell’s reluctance to cut interest rates — a move Trump believes is urgently needed to cushion the U.S. economy amid rising tariff tensions with China.
The discussions come on the heels of Trump’s aggressive move to impose 245% tariffs on Chinese imports, escalating what analysts are calling the most intense U.S.-China trade war in history.
The White House has signaled it may ease tariffs for other trading partners, but China remains squarely in the crosshairs.
Related: Tariff Live Updates: Trump lashes on Jerome Powell, calls for his dismissal
Behind closed doors at Mar-a-Lago and in Oval Office meetings, Trump has reportedly floated former Fed Governor Kevin Warsh as a potential replacement for Powell. Warsh, who served during the 2008 financial crisis, is said to have advised against prematurely removing Powell, warning of the political and market consequences.
Still, Trump appears unfazed. “If I want him out, he’ll be out of there real fast, believe me,” Trump said, according to aides, reported WSJ.
Indeed, early signs of market reaction are already visible. Bitcoin dipped below the $85,300 level immediately after the report circulated and was trading at $84,775.65 at press time, as per Kraken’s price feed.