Trump assures that not going to fire Powell
Trump says he won’t fire Powell, easing fears of Fed disruption.
President Donald Trump said Tuesday he has “no intention” to fire Federal Reserve Chairman Jerome Powell, easing investor fears about potential disruptions to U.S. monetary policy.
He also signaled a willingness to reduce tariffs on Chinese imports, providing a double dose of relief to markets shaken by aggressive policy moves and rhetoric in recent weeks, reports Cryptopolitan.
“I would like to see him be a little more active in terms of his idea to lower interest rates…but, no, I have no intention to fire him,” Trump said during an Oval Office press event.
The president’s comments came just days after he harshly criticized Powell on social media, saying the chair’s “termination cannot come fast enough.” Tuesday’s reversal sent U.S. stock futures higher, lifted the dollar, and helped pull gold prices back from record highs.
Legal limits and internal warnings shape decision
Trump’s remarks follow internal warnings from top advisers, including Treasury Secretary Scott Bessent, about the potential market chaos and legal complications of trying to remove the Fed chair. Under the Federal Reserve Act, a president can only remove a governor “for cause,” such as misconduct—criteria that legal scholars say are unlikely to be met in Powell’s case.
Powell, who has said privately that he would contest any removal effort, has faced frequent criticism from Trump over interest rates and monetary policy. Still, the latest comments suggest a tactical retreat by the White House after growing pressure from markets and within Trump’s own administration.
Tariff adjustment signals trade thaw
In the same briefing, Trump hinted at reducing the current 145% tariff rate on Chinese goods. “It won’t be that high. It will come down substantially. But it won’t be zero. It used to be zero,” he said, striking a more conciliatory tone amid ongoing trade tensions.
The possibility of tariff relief, combined with confirmation that Powell will remain in place, helped stabilize financial markets. Analysts noted that while uncertainty remains, Tuesday’s remarks gave investors enough reason to pause the sell-off.
Still, some economists warned that politicizing the Fed could lead to long-term damage. “Firing Jay would be a catastrophic own goal,” said Mark Spindel, co-author of a book on Fed independence. “Turning the Fed into a political captive has no upside.”
Recently we wrote that Donald Trump has reignited his long-standing feud with Federal Reserve Chair Jerome Powell, threatening once again to remove him for refusing to cut interest rates.
