Speaker Johnson 'not sure' Trump has power to fire Fed chair

Amid reports that President Trump may attempt to fire the head of the Federal Reserve, Speaker Mike Johnson (R-La.) said Wednesday that it’s unclear if the president has the power to do it. 

“Can the president fire Jerome Powell? I’m really not sure,” Johnson, a former constitutional lawyer, told reporters in the Capitol. “I have been not happy with the leadership there, personally. But I’m honestly not sure whether that executive authority exists. I’d have to look at that.”

The comments follow a Wednesday report in The New York Times that Trump has already drafted a letter demanding Fed Chair Jerome Powell’s resignation and is now soliciting advice from GOP lawmakers about whether to send it. 

Powell joined the Federal Reserve Board in 2012, under former President Obama, and was promoted to the chair position by Trump in 2017. Since then, however, Trump has bashed his appointee for his handling of monetary policy during the COVID-19 pandemic and, more recently, for not cutting interest rates more aggressively since Trump took office for a second time in January. 

Earlier this month, the administration's criticisms of Powell took a turn when White House budget chief Russell Vought said he was investigating a renovation of the Fed headquarters in Washington — a multiyear project that’s seen its price tag soar to $2.5 billion. 

The scrutiny has led to speculation that Trump intends to use the renovation budget hike as a means to push Powell out and bring in someone more likely to heed Trump’s demands to lower interest rates. 

Trump on Wednesday dismissed the idea that he was ready to fire Powell, saying the reports were simply “not true.” But he also left that door open, suggesting the decision could hinge on the findings of Vought’s investigation.

"I don't rule out anything, but I think it's highly unlikely, unless he has to leave for fraud," Trump told reporters in the Oval Office. 

Johnson, for his part, said he supports the notion of replacing Powell but remains unsure if Trump has the authority to push him out unilaterally. 

“I believe new leadership would be helpful at the Fed. And I believe interest rates need to be adjusted, and I agree with the president's assessment on some of those decisions,” Johnson said. “So we'll have to see."