市場分析

Trump: No Plans to Remove Jerome Powell as Fed Chair

Amos Simanungkalit · 09 Dec 202411.4K 閱讀

Image Credit: Getty Images

U.S. President-elect Donald Trump stated in a Sunday interview that he does not intend to remove Federal Reserve Chair Jerome Powell when he assumes office in January. When asked on NBC News' "Meet the Press with Kristen Welker" whether he would seek to replace Powell, Trump replied, "No, I don't think so. I don't see it." He added that while Powell might not leave voluntarily, he would step down if instructed.

Trump had previously campaigned on lowering mortgage rates and other borrowing costs for American households, which could lead to conflict with Powell over interest rate policies. Trump's pledge to impose broad tariffs might also complicate the Fed's efforts to control inflation.

Powell, who has served as Fed chair since 2018 after being appointed by Trump, has made it clear that he would not leave his position early, stating that it is "not permitted under the law" to remove him or any other Fed governor before their terms end. The relationship between Trump and Powell soured during Trump’s first term, with Trump often criticizing the Fed for its interest rate hikes. Trump even considered trying to dismiss Powell in 2018, upset over the Fed's decisions on rate increases, and later criticized Powell during the early stages of the COVID-19 pandemic.

Trump's public attacks on the Fed marked a departure from the usual practice of presidents avoiding direct criticism of the central bank, which operates independently under congressional oversight. Earlier this year, Trump suggested that he should have more influence over the Fed's decisions, hinting at a desire to undermine its independence.

With traders expecting the Fed to cut interest rates in its upcoming meeting on December 17-18, the reduction would bring the Fed's policy rate down to the 4.25%-4.50% range, one percentage point lower than its September level, when the central bank began its easing cycle.