Trump's Quiet Threat to the Fed: Draft Letter to Oust Powell Sparks GOP Tension
In a move that could shake the foundation of American economic policy, former President Donald Trump is reportedly holding a drafted letter that would fire Federal Reserve Chair Jerome Powell—and he's been quietly asking Republican allies whether he should pull the trigger.
According to multiple sources close to the former president, Trump has not only seriously contemplated removing Powell, but he’s already taken pen to paper—or at least to Word document. The letter exists. It’s real. And he’s shopping it around behind closed doors like a political live wire.
The Return of the Trump-Powell Feud
Trump’s rocky relationship with Jerome Powell dates back to his presidency, when he repeatedly accused the Fed Chair of slowing down the economy with interest rate hikes. At the time, Trump even floated the idea of demoting Powell, but ultimately never followed through.
Now, with 2024 long behind him and the 2028 election narrative beginning to brew, Trump appears to be returning to the populist, “America First” playbook that made him a political force. Targeting the Fed aligns with his long-standing distrust of the Washington establishment—and few institutions embody that establishment more than the Federal Reserve.
Testing the Waters in the GOP
What makes this episode even more revealing is the fact that Trump isn’t acting impulsively—yet. According to insiders, he’s actively asking top Republicans, including lawmakers and advisors, whether firing Powell would be “a politically smart move.”
Some GOP members, particularly those aligned with Trump’s economic nationalism, reportedly support the idea. They see Powell as a symbol of Wall Street favoritism and bureaucratic groupthink. Others, however, are warning that such a move could spook markets, destabilize investor confidence, and make Trump appear dangerously unpredictable ahead of another presidential run—or, at the very least, damage GOP economic credibility.
What Would Firing Powell Mean?
Removing a sitting Fed Chair is unprecedented and legally murky. The Federal Reserve is structured to be independent from political interference, and while the president nominates the chair, firing one mid-term without cause would likely prompt a constitutional challenge—and immediate market turbulence.
Still, Trump has never shied away from controversial legal fights. The draft letter could be a pressure tactic, a political trial balloon—or the beginning of a full-blown institutional showdown.
Political Theater or Serious Threat?
Some analysts believe the letter may simply be a strategic leak meant to assert dominance over economic policy discourse, especially with inflation and interest rates still top voter concerns. Others warn that if Trump does send the letter and follows through, it would ignite a constitutional crisis and erode global trust in America’s central banking independence.
Whatever the outcome, one thing is clear: Donald Trump is once again turning the quiet halls of financial governance into a political battlefield. And Jerome Powell might find himself at the center of a storm he thought he’d weathered once before.
Stay tuned. The Fed Chair’s job—and the future of U.S. monetary policy—could be hanging by a draft.
