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Donald Trump said he had “no intention” to dismiss the president of the American federal reserve Jay Powell, after indications that he could send him back to the markets.
The president hit repeatedly against the refusal of the Fed chair to reduce interest rates and last week reported that he thought he could reject Powell Before his mandate as the head of the central bank ended in May 2026.
Asset reiterated his complaints according to which the Fed needed to reduce the borrowing costs in the comments in the oval office on Tuesday afternoon, but he added: “I do not want to talk about it because I do not intend to dismiss him.”
The remarks intervened after intense speculation according to which the president of the Fed would soon be rejected for his refusal to reduce borrowing costs.
American actions increased in exchanges after opening hours, indicating large gains for the reference S&P 500 at the start of trade on Wednesday. The dollar index extended a recovery and increased by 1.1% while the Japanese yen dropped by 1%, with a dollar buying ¥ 142.95.
Investors said that the president’s apparently appearance on Powell has proven that there were at least some members of his inner circle who recognized that the markets appreciated the independence of the main American institutions.
“This shows that there are railings around this president,” said Dec Mullarkey, managing director of Fund Manager SLC Management. “It looks like [Treasury secretary Scott] The touch of Bessent, ”he added.
“It is clear that other people have spoken [Trump] and explained that [firing Powell] would have caused huge volatility. Bessent recognizes that market integrity must be maintained. »»
Powell has repeatedly declared that he would serve his full mandate as president of the Fed and thought that his early dismissal would not be authorized under American law.
The concerns of investors concerning his mandate increased after Kevin Hassett, director of the national economic council, said on Friday that Trump “would continue to study” the question of rejecting Powell.
Hassett, then president of the Council of Economic Advisors, argued Powell after the president of the Fed and Trump ended during her first mandate as president.
The financial markets sold on Monday after Trump attacked Powell like “Mr. Too late ”in a post on his Social truth Platform, the dollar falling to a three -year hollow against a basket of currencies and the S&P 500 index lowering 2.4%.
American shares and the dollar have largely recovered their losses during regular negotiations on Tuesday after Bessent said that a Commercial war with China was “unbearable”.
The Fed took a collision class with Trump for a short time after taking office, but the White House attacks intensified since the president launched his “reciprocal prices” on April 2.
Rate sets, including Powell, clearly indicated that they would refer to everything interest rate Cup until they are convinced that Trump’s trade policies will not lead to a persistent increase in inflation.
The president of the Fed and his colleagues have also clearly indicated that Trump’s prices increase the prospect of lower growth and higher prices, weakening an economy which, according to officials, was in good shape.
Trump went to Truth Social last Thursday saying Powell’s termination “could not come quickly enough” after the president of the Fed confirmed the day before that the central bank would not come to the rescue of the stock markets and the reduction of rates to counter the fears that the prices will lead to the recession of the American economy.
Additional George Steer and Peter Wells reports in New York
