Trump Confirms No Immediate Plans to Fire Fed Chair Jerome Powell
President Donald Trump recently stated he has no immediate plans to remove Federal Reserve Chair Jerome Powell, despite ongoing tensions and a Department of Justice (DOJ) investigation. Speaking to Reuters, Trump clarified that the decision regarding Powell’s future is still up in the air, as he mentioned, it is ‘too early’ to make a final judgment.
DOJ Investigation Centers Around Fed Renovation Costs
The DOJ is investigating a $2.5 billion cost overrun in the renovation project for the Federal Reserve’s headquarters, which Powell disclosed publicly on Sunday. Powell has denied any wrongdoing in the matter, as the probe continues to unfold. Trump, however, stated, ‘We’re in a little bit of a holding pattern with him,’ leaving uncertainty surrounding Powell’s position.
Trump’s Growing Frustrations with Powell’s Monetary Policy
Trump has been openly critical of Powell’s monetary policies, particularly with his handling of interest rates. According to Trump, Powell’s strategies ‘kill every rally’ and hinder potential economic growth. Trump believes that when markets soar, the Federal Reserve should support the growth by lowering interest rates, a stance Powell has not taken aggressively enough for the President’s liking.
Potential Replacements for Powell
While ruling out Treasury Secretary Scott Bessent as a candidate, Trump floated the names of Kevin Warsh and Kevin Hassett as potential replacements for Powell. Both individuals possess significant experience in economic policy, aligning with the administration’s views on promoting growth.
Broader Economic and Political Implications
Trump’s criticism of Powell highlights an ongoing tension between the White House and the Federal Reserve, raising concerns about the independence of the Fed from political influence. Critics argue that government interference in Fed operations could erode trust in the central bank.
Looking Ahead: Economic Policies in Focus
Trump continues to strongly advocate for ‘old-fashioned’ economic policies, which include aggressive rate cuts to support market growth. These policies, according to Trump, are essential for unlocking the full growth potential of the U.S. economy.
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