Trump: no plans yet to fire Powell
Asked whether the investigation into the Fed chairman's involvement gave him any reason to do so, the tycoon said that 'we are in a bit of a holding pattern at the moment'
Donald Trump said in an interview with Reuters that he has no plans to fire Jerome Powell, despite a Justice Department criminal investigation into the Federal Reserve chairman, but clarified that it is "too early" to say what he will ultimately do. "I have no plans to do that," Trump said. Asked if the investigation gave him reasons to do so, the president added that "right now we're kind of in a holding pattern with him and we'll determine what to do. But I can't go into details. It is too early. Too early."
Trump has repeatedly criticised Powell for not lowering the interest rate adequately and promptly. "A president should have something to say" about Fed policy, Trump said. "I've made a lot of money in business, so I think I understand it better than the too-slow Jerome Powell," he added.
Powell's term as Fed chairman expires in May, but he is not obliged to leave the Washington Board of Governors until 2028. Trump has suggested he is inclined to nominate former Fed governor Kevin Warsh or National Economic Council director Kevin Hassett to replace Powell. "The two Kevin's are very good," he said. "There are other good people as well, but I will announce something in the next couple of weeks," he continued.
The tycoon dismissed criticism of the Powell investigation, including from lawmakers whose support will be needed to confirm his nominee for Powell's seat: 'I don't care. They should be loyal. That's what I say." He also ignored the widespread view among analysts, investors, and economic policymakers around the world that the erosion of central bank independence could undermine the value of the US dollar and trigger inflation: 'I don't care,' he repeated.
