Powell to raise a chair “no intention” about firing him, Trump says
President Donald Trump says he doesn’t intend to fire Federal Reserve Chairman Jerome Powell, but he hopes interest rates will be cut.
Pressed by President Donald Trump on lower interest rates, Federal Reserve Chairman Jerome Powell met with the president at the White House, where Trump continued to sue his case, and Powell said he would not consider politics when setting monetary policy, according to a Fed statement and a White House spokesman.
According to the statement, Trump asked Powell to meet him. Powell has previously said he has never requested a meeting with the president. The two met on May 29th, “to discuss economic development, including growth, employment and inflation,” the Fed statement said.
“Speaker Powell did not discuss his expectations for monetary policy except to emphasize that the policy channels will depend entirely on the meaning of incoming economic information and outlook,” the statement continued.
White House press chief Caroline Leavitt said the Fed’s statement was “right,” but added that Trump “believes the Fed’s chairman is making a mistake by not lowering interest rates.
The Fed did not show plans to leave the key rate unchanged at the end of the May meeting, citing “uncertainty” and lower it anytime soon. The central bank lowered rates by percentage late last year as pandemic-related prices eased, but suspended cuts from three consecutive meetings.
The Fed will be held from June 17th to June 18th.
Trump repeatedly attacked the Fed leaders, but he retreated the suggestion that he could remove Powell. Trump’s attack on Trump dates back shortly after Trump appointed Powell in 2018.
“I’m not happy with him… If I want to put him out, he’ll come out of there really quickly, trust me,” Trump told reporters at a White House event on April 17th.
White House economic adviser Kevin Hassett said on April 18 that he was researching whether the president and his team could fire Powell. But Trump later said he “doesn’t fire” the Fed’s chair.
Powell warned in April about the impact of Trump’s tariffs on inflation, telling Chicago’s economic clubs that “unemployment is likely to increase as the economy slows down, and inflation could rise as they find their way, and some of those tariffs will be paid by the public.”
In general, the Fed will cut interest rates and stimulate the flag’s economy and job market. They raise interest rates or maintain them for longer to reduce inflation and prevent price spikes.
Trump assaulted him in a social media post on April 17, with Powell saying “We should have lowered interest rates, but he certainly should have lowered right now.”
Contributors: Burt Janssen, Paul Davidson
