Unlock the White House View Newspaper FREE
Your guide to what Trump’s second term for Washington, business and the world mean
Donald Trump has said he has no “no intention” to shoot US Federal Reserve Chairman Jay Powell, as indications that he could remove him fueled a sale in the markets.
The president has repeatedly hit the Fed Chairman’s refusal to lower interest rates and last week signaled that he believed he could rest Powell before his term while the head of the Central Bank ended in May 2026.
Trump repeated his complaints that the Fed had to reduce the costs of loaning in comments at the Oval Office on Tuesday afternoon, but he added: “I don’t want to talk about it because I don’t intend to rest.”
The remarks came after major speculation that the Fed Chairman would soon be fired for his refusal to reduce borrowing costs.
American actions increased in the post -time trade, showing great profits for the S&P 500 standard at the beginning of trade on Wednesday. The dollar index lasted a recovery and increased 1.1 percent while Japanese Jen fell 1 percent, with a dollar buying 142.95 ¥.
Investors said the president’s visible turn in Powell proved that there were at least some members of his internal circle who realized that markets value the independence of the main institutions of America.
“This shows that there are some guards about this president,” said Dec Mullarkey, managing director in the SLC Management Fund manager. “This feels like (the secretary of the Scott Treasury) Bessent’s touch,” he added.
“It is clear that other people have talked to (Trump) and explained that (Powell’s firing) would have caused great instability. Bessent acknowledges that market integrity must be preserved.”
Powell has repeatedly said that he would serve his full term as chairman of the Fed and believed that his early holiday would not be allowed under US law.
Investors’ concerns about his mandate increased after Kevin Hassett, director of the National Economic Council, said Friday that Trump would continue to study the Powell vacation issue.
Hassett, then chairman of the Council of Economic Advisers, supported Powell after the chairman of the Fed and Trump fell out of his first term as president.
Financial markets were sold on Monday after Trump attacked Powell as “Mr. Very Late” in a post on his social truth platform, with the dollar falling into a three-year low against a basket of coins and the S&P 500 index falling 2.4 percent.
US and dollar shares mainly recovered their losses during regular trading Tuesday after Bessent said a trade war with China was “unstable”.
The Fed has been in a collision with Trump that shortly after he took office, but attacks from the White House have intensified since the president began his “reciprocal tariffs” on April 2.
The letters of the norms, including Powell, have made it clear that they will postpone any decrease in the interest rate until they are sure that Trump’s trade policies will not lead to a steady increase in inflation.
The Fed Chairman and his colleagues have also clarified their concerns that Trump’s tariffs raise the prospect of lower growth and higher prices, weakening an economy that officials said earlier.
Trump took on social truth last Thursday, saying that Powell’s conclusion “cannot come so quickly” as the Fed chairman confirmed the day before that the Central Bank would not come to rescue the stock market and cut down the norms to oppose the fear that tariffs will lead the US economy to the recession.
Additional reporting by George Steer and Peter Wells in New York
