US President Trump says won’t remove Fed chairman Powell
In a recent television interview, US President Donald Trump revealed that he has no intention of removing Federal Reserve Chairman Jerome Powell from his position before his term ends in May 2026. This announcement comes as a surprise to many, considering Trump’s well-known disagreements with Powell and the Fed’s monetary policies.
During the interview, Trump also made some personal remarks about Powell, stating that he is “no fan” of the Fed chairman. However, Trump emphasized that he believes Powell will continue to lead the Fed until the end of his term, saying, “He’s doing a great job, and I think he’ll be doing a great job for a long time.”
Trump’s comments on Powell’s tenure come as the Fed is expected to make significant decisions in the coming months, particularly regarding interest rates. Trump has long been critical of the Fed’s decisions to raise interest rates, which he believes has slowed down the economy. In the interview, Trump reiterated his expectation that the Fed will eventually lower interest rates, saying, “I think they’ll be lowering interest rates at some point, because they have to.”
However, Trump’s comments on Powell’s removal may be seen as a departure from his past behavior. In 2019, Trump publicly criticized Powell and the Fed’s decision to raise interest rates, saying that he was “not happy” with the move. Additionally, Trump has previously hinted at the possibility of firing Powell or replacing him with someone more in line with his economic views.
Despite Trump’s personal feelings towards Powell, the two have had to work together to implement the Fed’s monetary policies. In 2020, Trump nominated Powell to serve a second term as Fed chairman, which was confirmed by the Senate. While Trump has occasionally criticized Powell’s decisions, the relationship between the two appears to be more cordial than adversarial.
Some economists and financial experts have weighed in on Trump’s comments, with many expressing skepticism about the likelihood of the Fed lowering interest rates in the near future. “The Fed is likely to keep interest rates steady, given the strong labor market and low inflation,” said Mark Zandi, chief economist at Moody’s Analytics. “Trump’s comments may be more reflective of his political views than any actual changes in Fed policy.”
Others have noted that Trump’s comments on Powell’s removal may be a ploy to exert pressure on the Fed to take certain actions. “Trump’s statement is likely an attempt to influence the Fed’s decision-making process, particularly on interest rates,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. “By saying Powell won’t be removed, Trump is trying to make it clear that he wants the Fed to take a more accommodative stance.”
In conclusion, Trump’s announcement that he will not remove Powell as Fed chairman before the end of his term comes as a surprise to many. While Trump’s personal feelings towards Powell may be negative, his comments suggest that he is willing to put aside their differences for the time being. As the Fed makes key decisions in the coming months, it will be interesting to see how Trump’s comments influence the market and the Fed’s actions.
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