United States President Donald Trump has said that he has “no intention” of firing Federal Reserve Chair Jerome Powell, despite days of speculation around the independence of the central bank.
Speculation surrounding Powell’s firing started after Trump called him a “major loser” for not lowering interest rates, but Trump has since dispelled these rumours at a recent press conference.
“I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday.
“I would like to see him be a little more active in terms of his idea to lower interest rates.”
In his earlier statements about Powell, Trump nicknamed him “too late”, arguing that the Fed should cut interest rates immediately.
This attack caused a frenzy among central bank investors, with the price of gold hitting record highs.
The central bank increased interest rates during the pandemic to cool rising prices, then initiated rate cuts as inflation came down and the U.S job market remained healthy.
They have held off further rate cuts as inflation rose above the Fed’s target of 2% a year. Powell also warned that Trump’s tariffs on most of the U.S.’s trading partners could worsen inflation.
“The comments sparked fresh criticism from Trump, who has said of Powell: “If I want him out, he’ll be out of there real fast, believe me.”
Despite Trump nominating Powell in his first term, the two have developed a difficult relationship.
Powell has insisted the president doesn't have the authority to fire him without cause, however, the current administration is testing this standard by firing board members of other independent agencies.
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