President Donald Trump, after days of trolling Federal Reserve Chairman Jerome Powell for missing the window to cut interest rates and signaling he may lose his job, clarified his plan for the head of the U.S. central bank on Tuesday.
“I have no intention of firing him,” he told reporters at the White House.
His remarks gave the U.S. stock market – which had seen steep downswings on the potential removal of Powell – a boost on Wednesday. Experts say it may not be possible for Trump to fire the Fed chair.”
Powell has done an abysmal job, but it is another element of uncertainty that the market doesn’t need right now to have all this talk about firing or replacing Powell,” EJ Antoni, a senior fellow at Unleash Prosperity, said during an appearance on “Varney & Co.” on Wednesday. Antoni noted inflation hit over 9% in July 2022 on Powell’s watch.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick convinced Trump to stand down because firing Powell wouldn’t make a difference, as interest rates would remain at current levels and any move would just irk financial markets already in turmoil over tariffs, according to The Wall Street Journal.
This year, the Nasdaq Composite has lost 13%, the S&P 500 more than 8% and the Dow Jones Industrial Average nearly 7%. U.S. markets are coming back from steeper losses earlier this month.
This is an excerpt of an article by FOX Business’ Suzanne O’Halloran
