In a press briefing, President Trump expressed no intention to dismiss Federal Reserve Chairman Jerome Powell, though he has been vocal about his dissatisfaction regarding the Fed's interest rate policies. The president's recent comments follow a period of financial market volatility where stock and bond prices fluctuated in response to his criticisms.
Trump Reiterates Support for Fed Chair Powell Amid Criticism
Trump Reiterates Support for Fed Chair Powell Amid Criticism
US President Trump clarifies stance on Federal Reserve Chairman Jerome Powell while continuing to push for interest rate cuts.
Despite past tensions, Trump remains optimistic about trade negotiations with China and anticipates potential tariff reductions. He emphasized the need for Powell to take a more aggressive approach in lowering interest rates, yet it remains unclear whether he has the legal power to remove him from his position. Trump initially nominated Powell to the Fed in 2017, and he was reappointed by President Biden for a second term in 2021. This year has seen static interest rates from the Fed, which Trump criticizes amid economic uncertainties primarily driven by escalating trade tariffs.
In light of Trump's remarks, Asian markets reacted positively, with major indices demonstrating gains. Investors had been apprehensive about Powell's interest rate decisions and their implications for inflation, especially amidst ongoing trade tensions and tariffs imposed on various countries, including China.
Recent assessments by the International Monetary Fund (IMF) highlighted a significant downgrade in US economic growth projections for the year, echoing concerns about the potential global slowdown due to heightened tariffs. The Trump administration's initiatives have resulted in tariff rates as high as 145% on Chinese imports, leading to retaliatory measures from China including a 125% tax on US goods. Commentators from state media have suggested that the US is waking up to the detrimental effects of these tariffs on its own economy.
In light of Trump's remarks, Asian markets reacted positively, with major indices demonstrating gains. Investors had been apprehensive about Powell's interest rate decisions and their implications for inflation, especially amidst ongoing trade tensions and tariffs imposed on various countries, including China.
Recent assessments by the International Monetary Fund (IMF) highlighted a significant downgrade in US economic growth projections for the year, echoing concerns about the potential global slowdown due to heightened tariffs. The Trump administration's initiatives have resulted in tariff rates as high as 145% on Chinese imports, leading to retaliatory measures from China including a 125% tax on US goods. Commentators from state media have suggested that the US is waking up to the detrimental effects of these tariffs on its own economy.
