Trump Assures Markets: No Plans to Fire Federal Reserve Chair Powell
In a move that has brought relief to US markets, President Donald Trump has stated that he has "no intention" of firing Federal Reserve Chair Jerome Powell before his term ends next year. The announcement was made in the Oval Office on Tuesday, and comes as a surprise given Trump’s recent criticism of Powell and the central bank’s monetary policy.
According to a report from CNBC, Trump said: "None whatsoever. Never did." This statement represents a significant shift in tone from the President, who has recently escalated his rhetoric against Powell and declined to rule out the possibility of firing him. Just last week, Trump said of Powell: "If I want him out of there, he’ll be out real fast."
The President’s comments have had a positive impact on US stock futures, which rose sharply across major indexes following the announcement. As CNBC reports, Trump’s latest remarks have helped to alleviate concerns about the independence of the Federal Reserve and the potential for market disruption.
Powell, who was appointed by Trump during his first term as President, is set to serve as Fed chair until May 2026. He has stated that the President cannot remove him under the law, a view that is supported by many experts. Despite this, Trump’s comments last week sparked concerns about the potential for a constitutional crisis.
White House economic advisor Kevin Hassett had suggested on Friday that Trump and his aides were actively studying the possibility of firing Powell. However, the President’s comments on Tuesday have allayed those concerns, at least for now. As CNBC notes, Trump’s decision to leave Powell in his position is likely to be seen as a positive development for markets, which have been subject to significant volatility in recent weeks.
In a statement that is likely to be welcomed by markets, Trump said: "I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates." The President’s comments come as the US economy faces growing uncertainty, with many analysts predicting a slowdown in growth in the coming months.
The Federal Reserve has traditionally operated with independence from the government, and many critics and analysts have warned that the President removing the chair of the Federal Reserve would cause panic in the markets. As CNBC reports, Trump’s decision to leave Powell in his position is likely to be seen as a vote of confidence in the Fed’s independence.
This article is based on a report from CNBC. The original article can be found here: https://www.cnbc.com/2025/04/22/trump-says-he-has-no-intention-of-firing-fed-chair-powell.html.
