16th Jul 2025 17:29
(Alliance News) - US President Donald Trump said Wednesday that he was not currently planning to fire Federal Reserve Chair Jerome Powell, but added he was not ruling it out.
Trump's mixed messaging, after months of escalating attacks on the independent central bank chief, sent 30-year US Treasury bond yields surging above 5%.
Asked about whether he would eject Powell, Trump said he is "doing a lousy job but no, I'm not talking about that."
"I don't rule out anything, but I think it's highly unlikely," he added.
Trump noted that he would in any case be able to make a change at the top of the Fed when Powell's term ends next year.
The US leader has repeatedly lashed out at Powell for not lowering interest rates more quickly, calling the central banker a "numbskull" and "moron" recently.
Late Tuesday, Trump suggested that a USD2.5 billion renovation plan at the Fed could provide cause to force Powell out. Asked by a reporter if the spending was a fireable offence, Trump said: "I think it sort of is."
The president has also received political backing for firing the Fed chair, US media reported Wednesday, noting that he told a room of Republican lawmakers that he would do so.
A White House official told CNBC: "They expressed approval for firing him. The president indicated he likely will soon."
Powell's term at the helm of the US central bank does not conclude until May 2026, and his term as a Fed governor is up at a later date.
Powell has said that he did not plan to step down early, and considers the central bank's independence over monetary policy to be a matter of law.
On Wednesday, financial markets also took a hit after reports about Trump's plans.
The dollar fell by 1% against the euro, while safe haven asset gold gained ground.
Wall Street's main indexes meanwhile slumped, while the yield on the 30-year US bond surged on market worries.
The Dow Jones Industrial Average slipped 0.2%, the broad-based S&P 500 Index lost 0.3% and the tech-focused Nasdaq Composite Index retreated 0.4%.
source: AFP
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