President Donald Trump said Tuesday he does not plan to fire Federal Reserve Chair Jerome Powell, signaling a step back from comments that had recently sparked turmoil in financial markets. The statement comes just days after Trump expressed his frustration with the central bank and hinted at Powell’s removal, leading to a market selloff.
Though Trump had previously suggested he had the authority to dismiss Powell, he now insists there are no plans to do so. His discontent stems largely from the Fed’s decision to hold off on further interest rate cuts—moves Trump believes are necessary to combat what he considers nonexistent inflation threats.
Trump has argued that inflation is under control, citing falling energy and grocery prices, and has continued to pressure the central bank to lower interest rates. Meanwhile, Powell has warned that the administration’s trade policies, particularly tariffs, could slow economic growth and heighten inflationary risks.
Despite the reassurance about Powell’s job security, Trump’s recent social media activity—particularly a pointed post last Thursday suggesting Powell’s term couldn’t end soon enough—suggests the president remains critical of the Fed’s independence and policy direction. Powell’s current term as chair runs through May 2026.
Source: CNN