Trump Reportedly Sought to Demote Fed Chief Powell

Jun 19, 2019

A news report citing anonymous sources is alleging that President Donald Trump instructed White House lawyers in February to identify whether it was legally possible to remove Jerome Powell from the role of Federal Reserve Chairman while maintaining a seat for him on the central bank’s board of governors.

According to a Bloomberg article that claimed to be sourced from “people familiar with the matter,” the President’s alleged request came after his frustration with the interest rate hikes that occurred after Powell succeeded Janet Yellen at the helm of the Fed. The White House lawyers reported pointed to the difficulties in firing without cause, but raised the possibility of replacing him with a sitting Fed governor. There is no historic precedent of demoting a Fed chairman.

When asked about the Bloomberg report and whether demoting Powell was an option, the president responded, “Well, let’s see what he does.” However, Larry Kudlow, director of the National Economic Council, said this was not under current consideration.

Since appointing Powell, the President has expressed public frustration over his leadership of the Fed, openly questioning the central bank’s rate increases and repeatedly demanding that it cut rates to further animate the economy.

About the author

Phil Hall

Link copied

Published

Jun 19, 2019

C-Suite Strategies

BOXABL Looks to Add Mortgage Lending to Its Homebuilding Business

The modular home manufacturer is pursuing a joint venture with OneTrust parent Warp Speed Holdings, targeting a 2027 launch

Modular home manufacturer BOXABL is looking to expand into mortgage lending through a proposed joint venture with Warp Speed Holdings, the parent company of OneTrust Home Loans, potentially opening a new origination channel in the growing factory-built housing market.The com...

Analysis and Data

Existing-Home Sales Hit 16-Year Low, More Declines May Be Ahead

October sales plunged 5.5% as high mortgage rates sidelined buyers, with economists warning the slowdown could extend into November and December closings

The housing market's fall slump is showing up in closed loans, and there may be more pain ahead for mortgage originators.Existing-home sales plunged 5.5% in October to a seasonally adjusted annual rate of 3.75 million, the weakest pace since August 2010, according to figures...

Feb

Atlanta, GA

More from

Regulation and Compliance

California Approves $25B Homebuyer Loan Program, Targeting New Construction

Proposition 37 could open new purchase lending opportunities, but financing costs and borrower qualification will determine its reach

Regulation and Compliance

Nov 11, 2026

When AI Takes Action: New Federal Framework Raises Questions

New federal banking guidance examines the risks of autonomous AI, from borrower communications to servicing transactions, with a focus on human oversight and accountability

Regulation and Compliance

Nov 10, 2026

States Tighten Mortgage Rules For Home Equity Investments

Massachusetts, Maine, and Illinois are expanding oversight of home equity financing

Regulation and Compliance

Nov 09, 2026

West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

Regulation and Compliance

Nov 06, 2026

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Regulation and Compliance

Nov 05, 2026

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

Regulation and Compliance

Nov 02, 2026

Popular