Trump's Intentions Towards Fed Chair Jerome Powell Remain Uncertain
In a flurry of mixed messages, US President Donald Trump has been reported as both ready to dismiss and unlikely to fire the Federal Reserve Chair, Jerome H. Powell. The confusion has raised concerns over the independence of the US central bank and sparked tensions on Wall Street.
A Matter of Disagreement
Trump's dissatisfaction with Powell centers on disagreement over monetary policy. According to the New York Times, the Trump administration accuses Powell of mismanaging a multibillion-dollar update to the Federal Reserve's Washington headquarters.
Le Monde reported that while Trump has previously considered dismissing Powell, whom he deemed as doing a bad job
, he currently has no plans to do so. However, he emphasized that he does not rule anything out but it is very unlikely
.
Threats and Denials
The New York Times reported that during a meeting in the Oval Office, Trump waved a draft letter dismissing Powell. However, Trump later repudiated the existence of such a letter, according to Al Jazeera English. ANSA reported that Trump is ready with a dismissal letter, though he denies any threat of termination for fraud.
Reactions and Implications
The Guardian reported that these developments have rattled Wall Street and renewed questions over the US central bank's independence. If Trump does decide to dismiss Powell, it would be an unprecedented move. As La Repubblica noted, no US president in modern times has fired the head of the central bank, with the exception of Carter, who had promoted his central bank's head to Secretary of the Treasury.
The New York Times quoted experts who suggested that Trump likely lacks a case to remove Powell. However, Trump has privately indicated he may soon dismiss Powell, according to The Guardian.
Conclusion
Despite the uncertainty, Trump has publicly rowed back on the idea of firing Powell. Trump deemed it highly unlikely
that he would dismiss Powell, unless for fraud, in an Oval Office meeting with Salman bin Hamad Al Khalifa, the crown prince of Bahrain, as reported by The Hindu and BBC News. He did, however, not completely rule out the possibility, Folha de S.Paulo reported.
This situation underscores the tension between the White House and the Federal Reserve, as noted by Clarin, and places Wall Street in a state of nervous anticipation. As things stand, Trump's intentions towards Powell remain unclear.