Washington: President Donald Trump says he had no intention of firing US Federal Reserve (Fed) chair Jerome Powell despite his frustration with the central bank not moving more quickly to slash interest rates.
“Never did,” Trump told reporters. “The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.”
Trump’s National Economic Council director Kevin Hassett told reporters last Friday that Trump was studying the question of whether he’s able to fire Powell after a series of presidential social media posts and public comments criticising the Fed.
The president unleashed a tirade against Powell last week right before the European Central Bank lowered its benchmark rate by a quarter point to 2.25%.
The US president repeatedly complained that the Fed was not cutting interest rates quickly enough.
Trump reiterated that criticism on Tuesday, even as he insisted the controversy over his remarks – which rattled markets – was overblown.
“We think that it’s a perfect time to lower the rate, and would like to see our chairman be early or on time, as opposed to late,” Trump said.
Treasuries and the US dollar showed greater stability on Tuesday as the White House said they were making progress on Trump’s efforts to negotiate trade deals to reduce the sweeping tariffs he announced earlier this month. While the 10-year Treasury yield barely budged, two-year yields rose to 3.82% after lacklustre demand for an auction. — Bloomberg
