Donald Trump expresses opposition to reappointing Jerome Powell as federal reserve chair

Former President Donald Trump expressed his disapproval of Jerome Powell serving another term as the Federal Reserve chair if he returns to the White House next year. Trump criticized Powell in an interview with Fox Business, labeling him as "political" and insinuating that he might manipulate interest rates to benefit the Democrats in the upcoming fall elections. During the interview with host Maria Bartiromo, Trump suggested that Powell's potential decision to lower interest rates could be a move to aid the Democrats.

Powell's Response

While Trump declined to comment, Powell, who was selected by Trump as Fed Chair in 2017, emphasized the Fed's non-partisan stance, stating that they do not consider political events when formulating monetary policy. Powell reiterated that the Fed's focus remains on making decisions that are in the best interest of the economy, emphasizing that political factors do not influence their decision-making process.

Fed's stance on interest rates

This statement from Trump occurs as the Federal Reserve contemplates the timing of interest rate reductions. Despite the speculation, the central bank decided to maintain the current interest rates at its recent meeting. Powell affirmed that the Fed is unlikely to commence rate cuts in March unless there is substantial evidence of progress in addressing inflation concerns. Powell emphasized that the Fed's decisions are based on what they deem fitting for the economy at the right time, emphasizing their commitment to making decisions solely based on economic factors.