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President Donald Trump says he has no plans to fire Federal Reserve Chair Jerome Powell.
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Trump had criticized Powell for not cutting interest rates, but now seems to have toned down his rhetoric.
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The President still wants the Fed to lower interest rates, saying it’s a “perfect time” to do so.
US President Donald Trump has stated that he has no plans to fire Federal Reserve Chair Jerome Powell, despite recent criticisms of the central bank chief for not cutting interest rates.
Trump made the comments while speaking to reporters in the Oval Office on Tuesday.
“I have no intention of firing him,” Trump said. “I would like to see him be a little more active in terms of his idea to lower interest rates.” The President’s comments came after days of intensifying criticisms of Powell, which had rattled investors and sparked fears of a sovereign debt crisis.
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Trump’s change in tone attracted a positive response from Wall Street, with equity index futures surging by nearly 2% on the resumption of trading on Tuesday evening.
Evercore ISI Vice Chairman Krishna Guha noted that the de-escalation “materially reduces the likelihood of worst case outcomes including stagflation and the morphing of the tariff crisis into a sovereign debt crisis.”
Trump still wants the Fed to lower interest rates, saying, “We think that it’s a perfect time to lower the rate, and we’d like to see our chairman be early or on time, as opposed to late.”
The President also expressed optimism that a trade deal with China could “substantially” cut tariffs, which could provide a boost for investors.
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