President Donald Trump stated Tuesday he holds no intention of removing Federal Reserve Chair Jerome Powell from his post. The comment signals a potential shift from recent strong rhetoric targeting the nation's central bank leader.
Speaking in the Oval Office, President Trump responded directly when asked about Powell's job security. "None whatsoever," he said, adding, "Never did."
This clarification follows a period where the president intensified criticism of Powell, particularly regarding interest rate levels. Mr. Trump previously suggested Powell's removal could happen "real fast" if he desired it.
White House economic adviser Kevin Hassett indicated just days ago that administration officials were examining the possibility of firing the Fed chair. Such a move would depart from historical precedent regarding the central bank's independence.
Market participants often watch developments in Washington closely. Platforms like Tradingview allow traders to analyze market reactions to political news in real time. Prices for U.S. stock futures gained following the President's latest statement.
Mr. Trump has repeatedly pressed the Federal Reserve to cut rates, arguing lower borrowing costs would fuel stronger economic expansion. He reiterated this view Tuesday.
"I would like to see him be a little more active in terms of his idea to lower interest rates," the president told reporters. "This is a perfect time to lower interest rates."
Powell, appointed by Trump during his first term, holds his chairmanship until May 2026. Powell has maintained the law does not permit a president to remove him without cause. Critics warned previously that attempts to remove Powell could cause significant market disruption.