U.S. President Trump’s Critique of Federal Reserve Chair

(Reuters) – U.S. President Donald Trump stated on Thursday that the termination of Federal Reserve Chair Jerome Powell “cannot come fast enough,” urging the central bank to reduce interest rates.

In a post on his social media platform, Truth Social, Trump reiterated the need for lower rates, saying that Powell “should have lowered interest rates, like the European Central Bank, long ago, but he should certainly lower them now.”

Trump has previously hinted at the possibility of firing Powell. His comments follow a day after Powell emphasized the Fed’s “independence” at an Economic Club of Chicago event.

Market Reactions

Jack McIntyre, Portfolio Manager, Brandywine Global:
“If he appoints someone reminiscent of Arthur Burns, who was aligned with Nixon and failed to control inflation, the bond market will react negatively.”

Tom Bruce, Macro Investment Strategist, Tanglewood Total Wealth Management:
“Trump’s dissatisfaction with Powell is not new. While he might attempt to remove him, that would likely cause significant damage. A better approach might be to introduce a new Fed chair before the current one departs.”

Rohan Khanna, Head, Euro Rates Strategy, Barclays, London:
“It’s obvious Trump desires rate cuts, but I doubt his comments will significantly influence the FOMC.”

Jamie Cox, Managing Partner, Harris Financial Group, Richmond Virginia:
“Trump wants the Fed to support his trade agenda. The U.S. Dollar is crucial for global trade, and the Fed should maintain policies to protect it.”

Christopher Hodge, Chief U.S. Economist, Natixis, New York:
“I previously doubted Trump’s chances of removing Powell, but that confidence is waning. Trump appears acceptant of a slowing economy, and the likelihood of policy changes has increased.”

Ross Bramwell, Market Strategist, Homrich Berg, Atlanta:
“Trump and Powell have not had a good relationship. Despite Trump’s calls for Powell’s departure, I don’t believe he will pursue that strategy, facing pushback from within Congress and public opinion favoring an independent Fed.”