The president of the Fed Powell will not be dismissed but should reduce interest rates

President Donald Trump said on Tuesday that he had “no intention” to dismiss the president of the federal reserve Jerome Powell before his mandate to lead the American central bank ends next year.

“None,” said Trump in the oval office when he was asked to clarify that he did not ask for the withdrawal of Powell. “I never did it.”

The commentary represents a dramatic change for Trump, who recently accelerated his rhetoric against Powell and refused to exclude the possibility of taking the unprecedented measure to dismiss him.

Trump, who put pressure on the Fed chair to reduce interest rates in the hope of granting economic growth, said Powell last week: “If I want it from there, it will be very quickly”.

The White House economic advisor Kevin Hassett said on Friday that Trump and his assistants actively study the possibility of dismissing Powell.

Powell, whom Trump appointed during his first mandate as president, should serve as president of the Fed until May 2026. He categorically declared that the president could not withdraw it under the law.

Trump withdrew his most incendiary criticism of Powell on Monday, calling him “major loser” and pressing him to immediately reduce the rates.

But when he was asked on Tuesday afternoon on the prospect of dismissing Powell, Trump said: “The press fled with things.”

“No, I do not intend to dismiss him,” Trump told journalists after a ceremony that swore to Paul Atkins as president of the Securities and Exchange Commission of the United States.

“I would like to see him be a little more active in terms of his idea of ​​reducing interest rates,” added the president. “It’s time to reduce interest rates.”

This is a news. Please update updates.

– Erin Doherty of CNBC contributed to this report.