Trump expresses no intention of dismissing Fed Chair Powell, despite ongoing criticism.
Rewritten Article:
Donald Trump, the President, has revealed he's got no plans to ax Federal Reserve Chair Jerome Powell, regardless of his continuous barbs towards Powell over monetary policy.
"What's the point?," Trump remarked during a chat with Kristen Welker.
It's clear that Trump ain't gonna pull the plug on Powell, even though it's been a rocky ride when it comes to their relationship. Here's why:
- Legal Stuff: Firing Powell mid-term would be a sticky wicket, with the possibility of sturdy resistance due to legal complexities. Even earlier whispers about the move being "questionable" legally have been doing the rounds [1].
- Term Time: Powell's seat as Fed chair finishes in May 2026, and it appears Trump is keeping this natural transition in mind. Trump even hinted that he can boot Powell in a jiffy if need be, suggesting that he doesn't see the need to make any drastic moves before Powell's departure [1].
- Market Matters: There were worries that booting Powell could rocket financial markets, and the fear of potential market turbulence might have swayed Trump into avoiding such a move [1].
- Pressure Tactics: Instead of resorting to extreme measures like removal, Trump continues to exert pressure on Powell via public statements, urging him to slash interest rates. This strategy lets Trump keep things in his court without taking things to the next level [1].
- President Trump, despite his criticism of Federal Reserve Chair Jerome Powell's monetary policy, has no intention of removing him from his position due to legal complexities that would arise from mid-term dismissal.
- Trump's term will end before Powell's seat as Fed chair, in May 2026, indicating that he is considering the natural transition rather than opting for immediate removal.
- To avoid potential market turbulence caused by Powell's removal, Trump has chosen to exert pressure on him through public statements, urging a reduction in interest rates.
- In light of legal restrictions and market concerns, Trump has decided against removal and instead employs political tactics, such as pressuring Powell in public, to influence the monetary policy-and-legislation outcome.
