Trump Denies Plans to Fire Federal Reserve Chair Powell
In a recent development, US President Donald Trump has denied that he plans to fire Federal Reserve Chair Jerome Powell, despite a White House official’s earlier assertion that Trump is likely to do so soon. The denial comes as a surprise, given Trump’s repeated criticism of the Federal Reserve’s monetary policy in recent months.
According to Reuters, Trump stated that it was “highly unlikely” that he would fire Powell, contradicting the earlier report from the White House official, who spoke on condition of anonymity. The official’s comment was made in the midst of a tumultuous period for the global markets, which have been impacted by concerns over trade tariffs and interest rates.
It’s worth noting that Trump has been vocal about his dissatisfaction with the Federal Reserve’s monetary policy, which he believes is hindering the economy’s growth. In the past, Trump has publicly criticized Powell and the Fed, stating that they are “making a mistake” by raising interest rates.
The Federal Reserve’s role in setting interest rates is crucial to the US economy, as it has a significant impact on borrowing costs, consumer spending, and overall economic growth. The Fed’s monetary policy has been a subject of controversy in recent years, with some arguing that it is too tight, while others believe it is too loose.
In the current market environment, the Fed’s actions have been closely watched by investors, who are concerned about the potential impact of trade tensions and interest rates on the global economy. The recent decline in stock futures, as reported by Reuters, is a testament to the market’s sensitivity to these factors.
Trump’s denial of plans to fire Powell has sparked a mixed reaction among investors and economists. Some have welcomed the news, seeing it as a sign of stability and continuity in the Federal Reserve’s leadership. Others have expressed skepticism, pointing out that Trump has a history of making public statements that later prove to be misleading or incorrect.
Despite the uncertainty surrounding the Fed’s future direction, Powell has maintained a steady hand, guiding the central bank through a series of rate hikes aimed at keeping inflation in check. The Fed’s actions have been criticized by some, who argue that they are too aggressive and may lead to a recession.
In the current environment, it’s difficult to predict what the future holds for the Federal Reserve and the US economy. However, one thing is clear: the central bank will continue to play a crucial role in shaping the country’s economic trajectory.
In conclusion, Trump’s denial of plans to fire Powell has brought some clarity to the situation, but it’s unclear whether this will have a lasting impact on the markets. As the global economy continues to navigate the challenges of trade tensions and interest rates, investors and economists alike will be closely watching the Federal Reserve’s actions and reactions.
Source:
https://www.reuters.com/business/sp-500-nasdaq-futures-slip-rate-tariff-concerns-2025-07-16/
