On Tuesday, President Trump announced that he had “no intention” of dismissing Federal Reserve Chair Jerome Powell, addressing ongoing speculation about the central bank’s independence that had been unsettling financial markets.
Speaking from the Oval Office, Trump confirmed, “I have no intention of firing him,” but reiterated his belief that “this is a perfect time to lower interest rates.” In recent days, Trump had used his social media platforms to voice discontent, criticizing Powell for not decreasing interest rates swiftly enough and suggesting that Powell’s “termination cannot come fast enough.”
These criticisms have caused further disruption in markets and among investors, who were already nervous about the economic implications of President Trump’s comprehensive tariffs. The Federal Reserve has proceeded cautiously regarding rate cuts, partly due to the potential impact of these tariffs, which could lead to higher prices for imported goods.
Despite these concerns, Trump has portrayed the tariffs imposed on U.S. trading partners as beneficial for the nation, suggesting that they could favor American workers and the domestic manufacturing industry. In his remarks on Tuesday, Trump stated, “We are taking in a lot of money from tariffs.”
Jerome Powell’s term as Chair of the Federal Reserve concludes next year. The situation continues to develop.
