Trump says not planning to fire US Fed chief Powell, after report prompts drop in stocks
The US president confirmed discussing Powell’s ouster with Republican lawmakers, and continued his attacks on the central bank’s policies
US President Donald Trump said Wednesday he was not planning to fire Federal Reserve Chair Jerome Powell, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.
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 criticising Powell on an almost daily basis for being “TOO LATE” to cut interest rates, said the report was not true. But Trump confirmed he had floated the idea with Republican lawmakers on Tuesday evening, marking the latest chapter in an escalating campaign by Trump against the independent central bank and its embattled chief.
“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 US$2.5 billion 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.