Powell to remain Fed chair, ‘no intention’ on firing him, Trump says
President Donald Trump says he has no intention on firing Federal Reserve chairman Jerome Powell, but he would like to see interest rates cut.
President Donald Trump is lashing out again at Federal Reserve Chair Jerome Powell after the central bank kept interest rates steady in a May 7 announcement and Powell said he’s in “no hurry” to cut rates.
Trump said Powell is a “FOOL, who doesn’t have a clue.” The president repeatedly has criticized Powell, saying his “termination cannot come fast enough” before backing off and saying he has “no intention of firing” the Fed chair.
The Fed has left it’s key interest rate unchanged for three consecutive meetings, with Powell citing economic uncertainty.
“We are comfortable with our policy stance,” Powell said at a May 7 press conference. “We think right now the appropriate thing to do is to wait and see how things evolve. There’s so much uncertainty.”
Trump’s tariffs have raised concerns about consumer price hikes and inflation, which the Fed combats with higher interest rates. The trade conflicts also have elevated concerns about lower growth and a recession. Interest rate cuts are a tool to stimulate growth.
“It’s really not at all clear what it is we should do,” Powell said.