Trump floats firing Fed chair with GOP lawmakers, then backs off

“We’re not planning on doing anything,” Trump said to reporters. “I don’t rule out anything, but I think it’s highly unlikely — unless he has to leave for fraud.”

The reversal came as Trump faced mounting pressure from Republicans on several fronts — including his administration’s refusal to release files related to deceased sex offender Jeffrey Epstein. House Republicans had come to the White House for a meeting on pending cryptocurrency legislation that some of the lawmakers had concerns about, but the discussion veered into other matters, including firing Powell.

Stocks initially sank on the news of a potential firing, but they rebounded after Trump’s denial. The Dow Jones Industrial Average abruptly lost more than 300 points, before recovering.

It remains to be seen whether Trump will follow through on the threat to fire Powell, a frequent target for the president. Trump has attacked Powell repeatedly, arguing lower rates would make it easier for the United States to finance ballooning deficits.

Some administration officials appear eager for Trump to act. Bill Pulte, a federal housing regulator who has spent weeks attacking Powell and calling for him to resign, gave Trump a draft letter to fire the Fed chief earlier this week, according to a senior administration official, who spoke on the condition of anonymity to describe the private encounter.