(Reuters) – U.S President Donald Trump said on Thursday that Federal Reserve Chair Jerome Powell’s termination “cannot come fast enough”, while calling for the U.S. central bank to cut interest rates.
Trump, in a post on his social media platform Truth Social, reiterated his stance on rate cuts, saying that Powell “should have lowered interest rates, like the (European Central Bank), long ago, but he should certainly lower them now.”
Trump has at times threatened to try to fire Powell. His comments come a day after the Fed chief said at an event at the Economic Club of Chicago that the Fed’s “independence is very widely understood and supported in Washington and in Congress where it really matters.”
COMMENTS:
JAMIE COX MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND VIRGINIA
“Trump wants the Federal Reserve in his corner for his trade agenda. They are, he just doesn’t realize it. The US Dollar is our greatest advantage in world trade, and the Federal Reserve should do everything possible to foster monetary policy which protects it. Administrations come and go, hits on the effects of monetary policy are long lasting.”
CHRISTOPHER HODGE, CHIEF US ECONOMIST, NATIXIS, NEW YORK
“So previously I thought the odds were very much against Trump trying to remove Powell, but my confidence has faded. Trump seems more comfortable than expected with a slowing economy and equity volatility and the tariff policies are much more onerous than anticipated, even if they have been walked back a bit. The bottom line is the parameters of potential policy outcomes has widened and while I still think Powell will be retained until his term ends, I am less certain that I was previously.”
ROSS BRAMWELL, MARKET STRATEGIST, HOMRICH BERG, ATLANTA
“It doesn’t seem like they have gotten along for many years… he has called for Powell’s departure a few times now. But I don’t believe that President Trump would make that move at this time. He would get some push back from other Republicans in the Senate and the House…even public opinion would probably go against as most people have confidence in the market because of an independent Fed. Trump may increase his vocal criticism, but I don’t think trying to remove him is likely.”
(Compiled by the Global Finance & Markets Breaking News team)
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