Washington: The president of the United States, Donald Trump, has said that he could change his mind about the dismissal of the president of the Federal Reserve, Jerome Powell.
Trump has often criticized Powell for not reducing interest rates and has previously threatened to eliminate it. But now, it seems to be softening its position, although Powell’s term will end soon.
“I don’t know why the Board does not annul (Powell),” Trump wrote in a long publication about the true policy of Fed Criticing Fed. “Maybe, just maybe, I will have to change my mind about saying goodbye? But independently, its term ends shortly.”
Trump added: “I completely understand that my strong criticism of him makes it more difficult for him to do what he should be doing, reducing the rates, but I have tried it in different ways.”
The presidents of the Fed have been seen for a long time as isolated from the presidential dismissal unless due to embezzlement or misconduct, but Trump has repeatedly threatened to prove that legal limit threatening to say goodbye to Powell.
Trump is almost often reversed the course of those threats. “I’m not going to fire him,” he said at the White House on June 12.
The Fed maintained stable rates on Wednesday in the range of 4.25% – 4.50% and predicted slower growth along with greater unemployment and inflation by the end of the year.
The governor of the Fed, Chris Waller, who has been floated as a possible Trump choice to succeed Powell, said Friday that with the fall of inflation and the labor market that shows signs of softening, the target cuts should be considered in early July.
But even Waller joined the Fed Fed decision on Wednesday to keep the fees without changes, without showing any will among the six fellow members of the Powell Board or the five presidents of the banks of the Regional Voting Fed to “annul it.” Fed decisions are generally based on consensus, and more than one or two dissidents are uncommon.
Partly chosen by the beliefs of voters who could control high inflation, the United States Republican President has imposed tariff walks during his time in office. Powell, echoing the academic consensus, has said that some of these rates would result in higher consumption prices.
Powell’s term ends in May 2026, and Trump is expected to nomine a successor in the coming months.
A ruling from the Supreme Court in May facilitated the concerns that Trump could fire Powell, since the judges described the Fed as “an exclusively structured and quasi private entity.”
