Trump said he does not intend to fire Powell after he has attacked the Federal Reserve Chair for not lowering interest rates.
Andrew Harnik/Getty Images North America
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Andrew Harnik/Getty Images North America
President Trump said Tuesday he had “no intention” of firing Federal Reserve Chair Jerome Powell, ending days of speculation about the independence of the central bank that had roiled the financial markets.
“I have no intention of firing him,” Trump said from the Oval Office, though he maintained, “this is a perfect time to lower interest rates.”
Since last week, Trump has used his social media platform to criticize Powell for, in his view, not lowering interest rates quickly enough — and at one point mused Powell’s “termination cannot come fast enough.”
The attacks had roiled markets and investors already on edge about the economic impact of President Trump’s sweeping tariffs.
The Fed has been cautious about lowering rates, in part because of the impact of Trump’s tariffs, which would make imported goods more expensive.
However, Trump has framed tariffs against U.S. trading partners as a win for the country — and good for American workers and the domestic manufacturing sector.
“We are taking in a lot of money from tariffs,” Trump said in his remarks Tuesday.
Powell’s term as Fed chair ends next year.
This is a developing story