President Donald Trump said on Tuesday that he did not intend to dismiss the president of the federal reserve, Jerome Powell, although the Fed, the Fed would not reduce interest rates.
Trump, who is arguing with Powell for years, told journalists in the White House: “I don’t intend to dismiss him. I would like to see him be a little more active in terms of his idea of reducing interest rates.”
“This is the ideal time to reduce interest rates. If it doesn’t, is it the end? No, that is not the case. But that would be a good timing,” he said, adding that Powell could have reduced rates even earlier.
The economic adviser of the White House, Kevin Hassett, said last week that the president and his team studied the idea of dismissing Powell, but Trump had denied reports and said on Tuesday that he had “never” planned to dismiss him.
The White House did not respond to a request for comments from Business Insider.
The markets rallied following Trump’s comments, with stock -up contracts and the increase in the dollar after the shares rebounded earlier in the day following Monday market volatility.
Trump also said on Tuesday that prices on China were “very high” and “would decrease considerably”.
Trump’s comments occurred after recently increasing his criticism of Powell, whose mandate as president of the Fed should end in May 2026.
Last week, Trump said that “Powell’s termination could not come quickly enough”, which raises if the president would have the power to dismiss him.
Trump urged Powell on Monday to reduce interest rates in an article on Truth Social, calling him “Mr. Too late, a big loser”.
The White House conflict with the Fed concerned investors and stocks, bonds and the dollar decreased on Monday.
Market observers said Trump could set up the Fed and Powell to criticize if the economy is falling into a recession this year, which, according to economists, are saying more and more.
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