Trump says he could demote US Fed chair Powell but has not threatened to do so
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US President Donald Trump said he has the power to demote US Federal Reserve chair Jerome Powell, but has not threatened to do so.
“I didn’t ever threaten to demote him,” Trump said in an NBC interview broadcast yesterday. “I’d be able to do that if I wanted to, but I haven’t suggested that.”
Trump has been pressing for the Fed to cut interest rates since last October when he said the central bank had “gone crazy” under Powell after several rate hikes.
The Fed kept interest rates steady on Wednesday but hinted it could start to cut rates as early as next month in the face of threats such as the worsening trade war with China.
Trump said the next day that the Fed should have cut rates, but “you can’t win ‘em all.”
Bloomberg reported on Tuesday that the White House counsel’s office had explored demoting Powell in February and stripping him of the Fed chairmanship.
Powell was asked on Wednesday about the reports that Trump wanted to demote him.
“I think the law is clear that I have a four-year term, and I fully intend to serve it,” Powell told reporters.
Trump told NBC in yesterday’s interview that he was “not happy” with Powell’s performance.
“No I don’t think he’s doing a good job,” he said.
Trump said former President Barack Obama had a Fed chair “that kept rates very low. I had somebody that raised the rates very rapidly. Too much. He made a mistake.”
The Fed has raised interest rates seven times since Trump took office.
Trump has ignored the convention that the Fed is allowed to plot an independent course by repeatedly criticising its decisions.