WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
United States President Donald Trump said on Monday he has no plans to fire Federal Reserve Chairman Jerome Powell. His statement followed a Bloomberg report that the president likely plans to do so soon — sending stocks and the dollar lower while Treasury yields rose.
“Those reports are not true,” Trump said.
“I’m not ruling anything out, but I think it’s very unlikely — unless he has to go because of fraud,” Trump said, referring to recent criticism from the White House and Republican lawmakers over cost overruns in the $2.5 billion renovation of the Federal Reserve’s historic headquarters in Washington.
Stocks recovered some of their losses, and bond yields pared losses after Trump’s comments, in which he again criticized Powell for not cutting interest rates, calling him a “terrible” Federal Reserve chairman.
Trump acknowledged that he had spoken to some Republican lawmakers about the possibility of firing Powell, but added that his stance on the matter was more cautious than theirs.
Asked whether the White House had sent any signal that the president intended to fire Powell, a Federal Reserve official pointed to Powell’s previous public statements saying he intended to serve out his full term.
Powell was nominated by Trump in late 2017 to take over as Fed chief, and four years later was nominated for a second term by Democratic President Joseph Biden. His current term runs until May 15, 2026.
Last week, the White House stepped up its criticism of the Fed’s management, when Office of Management and Budget Director Russell Voight sent a letter to Powell saying Trump was “extremely concerned” about cost overruns in the renovation of its Washington headquarters. In response, Powell asked the U.S. central bank’s inspector general to review the project, and the Fed released a frequently asked questions (“FAQ”) document that disputed some of Voight’s claims—including those about VIP dining rooms and elevators, which he said had further increased costs.
