Trump reiterates no intention to replace Powell but urges the Federal Reserve to cut interest rates again
U.S. President Donald Trump reiterated his intention not to replace Federal Reserve Chairman Jerome Powell, despite having previously stated he would nominate a new chairman. Trump criticized the Federal Reserve's slow rate-cutting actions during an event at the White House, stating that high interest rates are driving up government borrowing costs. He indicated that the Federal Reserve could raise rates at any time if inflation rebounds. The Supreme Court ruled that the Federal Reserve's senior officials are not subject to the president's removal authority, providing legal protection for Powell's term. The Federal Reserve's policy meeting next week is expected to keep interest rates unchanged
According to the Zhitong Finance APP, on Thursday, U.S. President Donald Trump reiterated that he has no plans to replace Federal Reserve Chairman Jerome Powell. A few days ago, he stated that he would "soon" nominate a candidate for the next Fed chairman.
During an event at the White House on Thursday, Trump said, "The fake news media always says, 'Replacing him would have serious consequences.' Although I don't understand how serious it could be, I really don't plan to do that."
As more signs of cooling inflation emerge, Trump once again complained about the Fed's slow rate-cutting actions. It is understood that Powell's term as chairman will last until May 2026.
"We all call him 'Mr. Too Late,' right?" Trump said, expressing his dissatisfaction with the current high interest rates that are driving up the federal government's borrowing costs. He claimed that if inflation rebounds, the Fed could raise rates again at any time.
Trump stated, "Assuming inflation occurs, you can raise rates a year later. I absolutely do not oppose it; I would even be the first to support it. But by then, he would be slow to react again."
Last month, the Supreme Court ruled that the Federal Reserve, as a "structurally unique quasi-private entity," is not subject to the president's removal authority for its senior officials. This ruling provides legal protection for Powell's tenure. Previously, Trump had sent mixed signals, suggesting that he might dismiss Powell before the end of his term. In April of this year, Trump claimed he had no intention of replacing Powell.
The Federal Reserve's policy meeting scheduled for next week is expected to keep interest rates unchanged. Powell and his colleagues have indicated that the central bank will pause rate adjustments until the impact of the Trump administration's policies on tariffs, taxes, and immigration on the economy becomes clearer
