Trump says he has 'no intention of firing' Federal Reserve Chairman Jerome Powell
WASHINGTON – President Donald Trump repeated his desire for lower interest rates but told reporters he wouldn’t fire Jerome Powell, the chairman of the Federal Reserve.
“I have no intention of firing him,” Trump said April 22 in the Oval Office, after a swearing-in ceremony for Paul Atkins as chairman of the Securities and Exchange Commision. “I would like to see him being a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates.”
Trump has been critical of Powell’s reluctance to lower interest rates. Trump’s comment April 21 on social media that Powell was “a major loser” sent markets tumbling.
The central bank raises rates or keeps them higher for longer to cool the economy and curtail inflation. Lower rates stimulate the economy and job market.
Fed officials have forecast two rate cuts this year, but some economists think the Fed will have to stay on hold.
Trump argued that interest rates should be lower because inflation is low and reducing the cost of borrowing is expected to spur the economy.
“If he doesn’t, is it the end? No it’s not. But it would be good timing,” Trump said. “It could have taken place earlier.”
The dollar tumbled to its lowest level in three years as investor confidence in the U.S. economy took another hit due to Trump criticizing Powell on social media. The criticism was viewed internationally as a threat to Powell’s independence. Stocks also fell amid news of the Powell criticism and of Trump's tariffs on imported goods.
White House economic adviser Kevin Hassett said April 18 that the president and his team were studying whether they could fire Powell. That move came a day after Trump said Powell's termination "cannot come fast enough" as he called for the Fed to cut interest rates.
White House press secretary Karoline Leavitt told reporters April 22 that Trump has a right to criticize Powell.
"The president thinks they’ve been making moves and taking actions in the name of politics rather than in the name of what’s right for the American economy," Leavitt said. "He thinks interest rates should be lower."
Asked if the president wanted a strong dollar, Leavitt said: "The president wants to see the dollar remain as the world’s reserve currency."