President Donald Trump has stated that it is "highly unlikely" he will dismiss Jerome Powell, the chair of the US Federal Reserve, despite admitting to discussing the possibility with lawmakers. This statement comes amid a backdrop of criticisms from Trump regarding Powell's management of interest rates and Fed properties, which have been echoed by some of his allies.
Trump Defies Expectations: Likely to Keep Fed Chair Powell Despite Criticism
Trump Defies Expectations: Likely to Keep Fed Chair Powell Despite Criticism
In a surprising turn, President Trump suggests he is unlikely to remove Jerome Powell as Fed Chair after his recent critiques.
Following discussions within Republican circles about the potential for Powell's sacking, the stock market and the dollar experienced fluctuations before stabilizing after Trump's remarks downplaying the idea. The president criticized Powell during a press conference, labeling him a "knucklehead" and asserting that he is "doing a lousy job," a sentiment consistent with Trump's previous calls for lowered interest rates.
Despite the tensions, Trump indicated he was not planning any actions to remove Powell, although he didn't completely rule it out, stating, "It's highly unlikely unless he has to leave for fraud." This admission seems to suggest that while the option remains, it’s not a priority for the president.
Powell's term is set to end in May 2024, but he retains the option to stay on as a governor until 2028. Legal interpretations of Powell's position indicate that he cannot be removed solely due to policy disagreements, which would align with the Fed's intent to operate independently from presidential influence.
In the midst of these developments, Treasury Secretary Scott Bessent hinted at an ongoing formal process to identify a potential successor to Powell, with names like Bessent himself, Kevin Hassett, and Kevin Warsh circulating as possible candidates. Powell was originally appointed by Trump in 2017, replacing Janet Yellen, and his term was extended by current President Joe Biden in 2021.
Despite the tensions, Trump indicated he was not planning any actions to remove Powell, although he didn't completely rule it out, stating, "It's highly unlikely unless he has to leave for fraud." This admission seems to suggest that while the option remains, it’s not a priority for the president.
Powell's term is set to end in May 2024, but he retains the option to stay on as a governor until 2028. Legal interpretations of Powell's position indicate that he cannot be removed solely due to policy disagreements, which would align with the Fed's intent to operate independently from presidential influence.
In the midst of these developments, Treasury Secretary Scott Bessent hinted at an ongoing formal process to identify a potential successor to Powell, with names like Bessent himself, Kevin Hassett, and Kevin Warsh circulating as possible candidates. Powell was originally appointed by Trump in 2017, replacing Janet Yellen, and his term was extended by current President Joe Biden in 2021.
