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Washington, DC – President Donald Trump recently stated that he has “no intention” of firing Federal Reserve Chairman Jay Powell. This statement may allay concerns about possible disruptions to US monetary policy during his second term in office. The announcement comes amid increased scrutiny of Trump’s economic agenda, which includes aggressive trade policies and proposed tariffs that have sparked debate over their impact on inflation and global markets.
Trump’s statement indicates a possible change in his stance from his first term, when he frequently criticised Powell and the Federal Reserve’s actions on interest rates. The president’s decision to retain Powell, whose term as chairman runs until 2026, indicates a desire for stability in monetary policy in a challenging economic environment.
Analysts note that Powell’s leadership has played a key role in overcoming challenges such as the economic recovery from the pandemic and the fight against persistent inflation. His approach to balancing interest rate adjustments and economic growth has drawn both praise and criticism, but Trump’s decision to keep him in office could provide stability for investors and policymakers.
The announcement also aligns with broader discussions about Trump’s economic priorities, including his proposed tariffs, which have raised concerns about a possible trade war. The Financial Times’ White House Watch newsletter highlights the importance of following these developments, providing analysis on how Trump’s policies could affect Washington, global business and international relations.
As the administration moves forward, attention will be focused on how Trump’s relationship with Pawlenty develops and whether that promise to keep the Fed chairman steadfast amid the conflicting demands of his economic agenda.
Source: Financial Times, 23 April 2025
