President Donald Trump is, once again, opening the door to firing Federal Reserve Chair Jerome Powell.
“Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board,” Trump wrote in a post on Truth Social after better-than-expected inflation data was released Tuesday morning.
“I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”
It’s not fully clear which lawsuit Trump is referring to. One possibility is the criminal investigation that Republican Rep. Anna Paulina Luna is advocating for, alleging Powell gave false testimony in June to lawmakers regarding the Fed’s renovation plans. Since Powell’s testimony, the Fed has published more materials clarifying the statements he made under oath.
Trump recently said he would allow Powell to stay on as head of the central bank until that term expires in May. But the president has also said he intends to announce his choice for Powell’s successor months earlier than is typical.
Trump now appears to be back to entertaining firing him. That’s a legally complicated endeavor, given that Senate-confirmed members of the Fed’s board can only be fired “for cause.”
However, Trump seems keen on homing in on the Fed’s multibillion-dollar building renovation as a possible reason that would merit a “for cause” firing. The president claimed the renovation should have been a “$50 Million Dollar fix up. Not good!”
Powell and Trump toured the Fed’s construction site together last month, at which point Trump seemed to appreciate the scope of the project and the necessary cost of renovating and updating the historic headquarters, saying “I just would like to see it get finished.”
If Trump proceeds with firing Powell, the Fed chair is expected to immediately contest it in a case that could be decided by the Supreme Court.
Trump recently announced he’s nominating his chair of the Council of Economic Advisers, Stephen Miran, to fill a newly opened position on the Fed’s Board of Governors. If confirmed by the Senate, Trump said he anticipates Miran being at the Fed for a matter of months and likely would not nominate him for chair.
For that position, Trump said he’s strongly considering former Fed Governor Kevin Walsh, National Economic Council Director Kevin Hassett and Fed Governor Christopher Waller.