According to Reuters, on July 16 local time, US President Trump said he did not plan to fire Federal Reserve Chair Powell, but did not completely rule out the possibility, while again criticizing Powell for delaying interest rate cuts.

Earlier on the 16th, a Bloomberg report stated that Trump might fire Powell in a short period of time, which caused the stock market and the dollar to fall, and US Treasury yields to rise.

On the same day, Trump answered media questions at the White House, stating that the report was false, "We don't plan to do it." However, he mentioned that he had indeed mentioned the idea of firing Powell to Republican lawmakers on the evening of the 15th. Previously, Trump had criticized Powell for cutting interest rates "too late" almost every day.

"I don't rule out any possibility, but I think the likelihood of this happening is extremely low, unless he has to leave due to fraud issues," Trump said.

On July 16 local time, Trump said he did not plan to fire Federal Reserve Chair Powell. Screenshot of video

What Trump referred to was the recent criticism from the White House and Republican lawmakers about the $250 million renovation of the Federal Reserve headquarters building, which they described as "luxurious and extravagant" with excessive costs. The Federal Reserve, however, stated that the purpose of renovating two historic buildings at its Washington headquarters was to reduce costs by consolidating operations.

On the 13th local time, White House economic advisor Hasset stated that the Federal Reserve was "greatly responsible" for the cost overruns in the renovation of its Washington headquarters, and if there were reasons, Trump had the right to fire Powell.

Powell was nominated as Federal Reserve Chair by Trump during his first term in late 2017, and later reappointed by former President Biden four years later. He has repeatedly stated that he will complete his term until May 15, 2026. A recent opinion from the US Supreme Court reinforced the long-standing interpretation of relevant laws, which states that the Federal Reserve Chair cannot be fired due to policy differences, but can only be removed for "just cause."

In an interview aired later that evening, when asked again whether he considered firing Powell, Trump said, "If he is willing to resign, I would be very happy, it depends on him. They say if I fire him, it will disrupt the market."

After making these remarks, the decline in US Treasury yields narrowed, and the stock market closed higher that day. In his speech, he continued to complain, calling Powell a "bad" chairman.

Trump accused the Federal Reserve of raising long-term interest rates, increasing the borrowing costs for the US government. Since signing the "Big and Beautiful" bill on July 4 local time, he has never stopped attacking Powell.

This article is an exclusive article from Observer, and unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7527839470796718638/

Statement: This article represents the views of the author. Please express your attitude below using the [Upvote/Downvote] buttons.