WASHINGTON: US President Donald Trump said on Thursday (Jun 12) he would not dismiss Federal Reserve Chair Jerome Powell, but signalled that he may take steps to pressure the central bank to lower interest rates, amid rising concerns over borrowing costs and inflation.
Speaking in unscripted remarks at the White House, Trump repeated his criticism of Powell over the Fed’s current stance, saying: “Raise your rates. You don’t have to keep them up here. If it’s going to go up, I’m okay with you raising – but it’s down, and we’re going out to financing, and I may have to force something.”
The president, who has been increasingly vocal about his frustrations with the central bank in recent months, made clear he does not intend to remove Powell from his post, despite frequently labelling him as an impediment to economic growth.
“In fact, he’s a numbskull,” Trump said in unscripted remarks. “But I’m not going to fire him.”
Trump’s comments come amid persistent speculation over whether he may replace Powell as chair, a position he first appointed him to in 2018. Last week, Trump said he would announce a decision on the next Fed chair “very soon.”
The president also said he was dissatisfied with rising oil prices, which have added to inflationary pressures. “I don’t like that oil is going up,” Trump added.
Oil prices have climbed in recent days amid concerns about potential conflict in the Middle East, adding pressure on global energy markets and US fuel costs.
Under Powell, the Fed has held interest rates steady for several months, even as inflation has shown signs of easing. While some economists believe a rate cut could come later this year, Trump has urged the Fed to act more quickly, arguing that high borrowing costs are constraining growth and investment.
Fed officials have so far resisted political pressure, insisting that any changes to interest rates will depend on economic data, not political influence.
Trump’s remarks are likely to fuel further debate over the independence of the US central bank, a cornerstone of American monetary policy for decades.
