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Trump asked lawmakers whether to fire Powell, with insiders saying he has signaled a course of action.
On July 16, according to CBS News, multiple sources with direct knowledge revealed that Trump asked a group of House Republicans on Tuesday whether he should fire Fed Chairman Powell, to which those present expressed agreement. Several insiders indicated that Trump has signaled an intention to act. There is no legal precedent for a president firing the Fed chairman—federal law states that the Fed chairman can only be fired for "cause." This move could have serious negative repercussions for the financial markets. Government insiders told CBS News that Trump has mentioned the possibility of firing Powell for "cause" in both public and private remarks, but the White House has not yet formally established a legal basis for this.