Trump Denies Plans to Fire Fed Chair Powell, Calls Media Reports “False Talk”

U.S. President Donald Trump has publicly denied ever planning to remove Federal Reserve Chairman Jerome Powell, dismissing recent speculation as “false talk spread by the media,” according to a report by the Wall Street Journal.“There was never a plan to fire Powell,” Trump reportedly told aides this week. “It was all fake news.”However, behind the scenes, White House officials had taken the idea seriously after Trump repeatedly criticized the Fed and floated the idea of firing Powell in public forums.According to sources cited by the Wall Street Journal, White House legal teams were privately reviewing the feasibility of removing Powell, prompting concerns over potential market disruptions and legal blowback.Internal Pushback Prevented Powell OusterThe discussions came to an abrupt halt earlier this week when Treasury Secretary Jeff Benson and Commerce Secretary Lutnick intervened directly, warning President Trump of the potential consequences.Sources say Benson and Lutnick argued that firing Powell would likely:Trigger volatility in global financial marketsErode investor confidence in U.S. monetary independenceFail to achieve the intended result, since most Fed members are likely to maintain a similar monetary policy stanceLutnick reportedly told Trump that replacing Powell wouldn’t significantly impact interest rates, as other FOMC members were unlikely to adopt a materially different course.Market Impact: Bond Yields Stabilize, Bitcoin SurgesFollowing Trump’s decision to back off from firing Powell, long-term U.S. Treasury yields pulled back, easing market concerns over central bank stability. The clarification also coincided with a surge in Bitcoin, which broke above $94,000 on renewed investor confidence and declining dollar strength.The episode underscores the delicate relationship between U.S. fiscal leadership and central bank independence, especially amid heightened global market sensitivity and ongoing geopolitical uncertainty.