US Federal Reserve Chair Jerome Powell looks on, on the day he testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on "The Semiannual Monetary Policy Report to the Congress," on Capitol Hill in Washington, D.C., US, June 25, 2025. (REUTERS/Kevin Mohatt/File Photo)

A Bloomberg report earlier Wednesday saying that Trump was likely to fire Powell soon sparked a drop in stocks and the dollar, and a rise in Treasury yields.

Trump, who has been criticizing Powell for being "TOO LATE" to cut interest rates, said the report wasn't true. But Trump confirmed he had floated the idea with Republican lawmakers on Tuesday evening.

"I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," Trump said, a reference to recent White House and Republican lawmaker criticism of cost overruns in the 2.5 billion USD renovation of the Fed's historic headquarters in Washington. There has been no evidence of fraud, and the Fed has pushed back on criticism of its handling of the project. 

Powell, who was nominated by Trump during his first term in late 2017 to lead the Fed and then nominated for a second term by Democratic President Joe Biden four years later, has repeatedly said he intends to serve out his term, which runs through May 15, 2026.