Stock markets stabilize as Trump reassures investors amid ongoing criticisms of the Fed chair.
Trump Downplays Possibility of Dismissing Federal Reserve Chair Jerome Powell
Trump Downplays Possibility of Dismissing Federal Reserve Chair Jerome Powell
President suggests firing Powell is "highly unlikely" after discussing it with lawmakers.
In a recent statement, President Donald Trump described it as "highly unlikely" that he would dismiss Jerome Powell, the chair of the US Federal Reserve, despite having recently floated the idea to Republican lawmakers. This news initially caused a dip in stock markets and the dollar, but they rebounded after Trump asserted he was not actively pursuing the dismissal.
Trump has been openly critical of Powell, urging him to reduce US interest rates in a series of pointed remarks. The president's criticism intensified last week when allies accused Powell of poorly managing Fed property renovations. As he continues to express dissatisfaction with the Fed, Trump labeled Powell a "knucklehead" and alleged he is "doing a lousy job."
In his Wednesday remarks, Trump acknowledged the renewal of discussions about Powell's potential firing, a conversation he appeared to have abandoned earlier this year. However, he emphasized that there are currently no plans for such action, stating, "It's highly unlikely unless he has to leave for fraud."
Jerome Powell's current term as Fed chair is set to conclude in May 2024, at which point he is eligible to continue as a governor of the central bank until 2028. While Powell has contended that the president cannot dismiss him simply for policy disagreements, officials within the White House hinted that he could indeed be removed for cause. Treasury Secretary Scott Bessent noted that efforts are underway to identify potential successors for Powell, with himself, Kevin Hassett from the National Economic Council, and economist Kevin Warsh being mentioned as possible candidates.
Powell was initially appointed to lead the Federal Reserve by Trump in 2017, taking over from Janet Yellen, who was appointed by former President Barack Obama. His term was later extended by President Joe Biden in 2021.
Trump has been openly critical of Powell, urging him to reduce US interest rates in a series of pointed remarks. The president's criticism intensified last week when allies accused Powell of poorly managing Fed property renovations. As he continues to express dissatisfaction with the Fed, Trump labeled Powell a "knucklehead" and alleged he is "doing a lousy job."
In his Wednesday remarks, Trump acknowledged the renewal of discussions about Powell's potential firing, a conversation he appeared to have abandoned earlier this year. However, he emphasized that there are currently no plans for such action, stating, "It's highly unlikely unless he has to leave for fraud."
Jerome Powell's current term as Fed chair is set to conclude in May 2024, at which point he is eligible to continue as a governor of the central bank until 2028. While Powell has contended that the president cannot dismiss him simply for policy disagreements, officials within the White House hinted that he could indeed be removed for cause. Treasury Secretary Scott Bessent noted that efforts are underway to identify potential successors for Powell, with himself, Kevin Hassett from the National Economic Council, and economist Kevin Warsh being mentioned as possible candidates.
Powell was initially appointed to lead the Federal Reserve by Trump in 2017, taking over from Janet Yellen, who was appointed by former President Barack Obama. His term was later extended by President Joe Biden in 2021.
