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Trump says he has no plans to fire Fed chief Jerome Powell after calling him a ‘major loser’ | |
(about 1 hour later) | |
President says tariffs on China could be lowered days after lashing out over bank’s reluctance to cut interest rates | |
Donald Trump has said he has no plans to fire the Federal Reserve chair, Jerome Powell, and suggested the draconian tariffs the US has imposed on China could be lowered. | |
The president’s comments come days after he called the central bank boss a “major loser” whose “termination cannot come fast enough” and defended his tariffs after they triggered stock market sell-offs. | |
“I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday. “I would like to see him be a little more active in terms of his idea to lower interest rates,” he added. | “I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday. “I would like to see him be a little more active in terms of his idea to lower interest rates,” he added. |
Trump added that the 145% tariffs his administration has imposed on China were “very high”. “It will come down substantially. But it won’t be zero. It used to be zero,” he said. | |
Earlier this month, after another volatile day for stock markets, Trump dismissed investors’ reactions. “Sometimes you have to take medicine to fix something,” he said. | |
Those comments came after US stock markets had bounced back from a sharp sell-off triggered in part by fears that the president was planning to oust the Fed chair. | |
Trump has lashed out at the Federal Reserve in recent days, nicknaming Powell “Too Late” and arguing that the Fed should cut interest rates immediately. | Trump has lashed out at the Federal Reserve in recent days, nicknaming Powell “Too Late” and arguing that the Fed should cut interest rates immediately. |
The attacks on the independence of the US central bank rattled investors and hit stock and bond prices. The price of gold, seen as a safe haven, has reached record highs. | |
The Fed has a dual mandate: to maximise employment while keeping inflation in check. It increased interest rates after the Covid pandemic in order to cool rising prices, and initiated a series of rate cuts as the rate of inflation cooled and the US jobs market remained healthy. | The Fed has a dual mandate: to maximise employment while keeping inflation in check. It increased interest rates after the Covid pandemic in order to cool rising prices, and initiated a series of rate cuts as the rate of inflation cooled and the US jobs market remained healthy. |
But the central bank has been holding off on further rate cuts as inflation has stayed stubbornly above the Fed’s target rate of 2% a year. Last week, Powell warned that Trump’s imposition of tariffs on most of the US’s trading partners could worsen inflation. | But the central bank has been holding off on further rate cuts as inflation has stayed stubbornly above the Fed’s target rate of 2% a year. Last week, Powell warned that Trump’s imposition of tariffs on most of the US’s trading partners could worsen inflation. |
The comments sparked fresh criticism from Trump, who has said of Powell: “If I want him out, he’ll be out of there real fast, believe me.” | The comments sparked fresh criticism from Trump, who has said of Powell: “If I want him out, he’ll be out of there real fast, believe me.” |
Asked on Tuesday whether he had plans to oust Powell, Trump said: “None whatsoever. Never did. The press runs away with things. No, I have no intention of firing him.” |
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