Following a series of critical remarks aimed at Federal Reserve Chairman Jerome Powell, President Donald Trump expressed on Tuesday that he has no plans to dismiss the Fed leader. Over the past days, Trump had openly criticized Powell for failing to seize opportunities to reduce interest rates, even hinting at dissatisfaction with his performance.
At a press briefing at the White House, Trump stated, “I have no intention of firing him,” a comment that momentarily buoyed the U.S. stock market, which had experienced sharp declines amid speculation regarding Powell’s potential ouster. Analysts suggest that a termination of Powell is unlikely given the constraints of the President’s authority over the Federal Reserve.
On a recent broadcast of “Varney & Co.,” EJ Antoni, a senior fellow at Unleash Prosperity, expressed concerns about the impact of ongoing discussions about Powell’s job security on market stability. “Powell has done an abysmal job, but adding fuel to the fire with talk of replacement only contributes to uncertainty in the markets,” he remarked, referencing the inflation surge that exceeded 9% in July 2022 during Powell’s tenure.
EX-TRUMP ADVISER WARNS FIRING FED CHAIR POWELL NOW WOULD SPARK MARKET CHAOS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:COMP | NASDAQ COMPOSITE INDEX | 16785.282542 | +484.86 | +2.97% |
| SP500 | S&P 500 | 5389.68 | +101.92 | +1.93% |
| I:DJI | DOW JONES AVERAGES | 39696.78 | +509.80 | +1.30% |
According to a report from The Wall Street Journal, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick advised Trump against the idea of firing Powell, arguing that such a move would not change interest rates and could further unsettle markets already grappling with tariff-related turmoil.
Amidst these economic challenges, the Nasdaq Composite has dropped 13% in 2023, the S&P 500 has decreased by over 8%, and the Dow Jones Industrial Average has declined nearly 7%. However, the U.S. stock indices are beginning to recover from even larger losses experienced earlier this month.
Despite his reassurance to reporters, Trump continues to express discontent with Powell, whom he has labeled “Mr. Too Late” for his delayed responses regarding interest rate cuts. “I don’t think he’s doing a good job, he’s too late, always too late,” Trump commented last week, maintaining that he could swiftly remove Powell if he chose to do so.
TRUMP SLAMS JEROME POWELL AS ‘MR. TOO LATE,’ CALLS FED CHAIRMAN A ‘MAJOR LOSER’
On Tuesday, Trump reiterated his call for the Federal Reserve to proactively lower interest rates, stating, “This is a perfect time to lower interest rates. If he doesn’t, is it the end? No, it’s not, but it would be good timing.”
Market strategists are widely predicting that the Federal Reserve will maintain current interest rates at the upcoming May 7 meeting, with a first expected reduction of 25 basis points likely to occur in June, as indicated by the CME’s FedWatch Tool, which assesses the likelihood of rate changes.
