US President Donald Trump has rejected a media report about a soon-to-be discharge of the central bank manager Jerome Powell. This is wrong, said Trump on Wednesday. “I don’t rule out anything, but that’s highly unlikely, except if he has to go because of fraud.” Trump continued: “He does a bad job.”
Previously, the Bloomberg agency had put the US markets into turmoil with a message. Referring to an insider that was not mentioned by name, Trump would probably be released soon. The news agency Reuters also reported, citing an insider, that Trump was open to the idea.
Later in the evening Trump said that he would love to see it when Powell quit. He could not remove it himself without causing unrest on the stock exchanges.
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Investors reacted nervously on the stock exchange. The US dollar was noticeably under pressure, the three most important US stock indices slipped into the Wednesday trade in the USA by up to 1.1 percent in the minus. After Trump’s Dementi, the markets calmed down again.
Several US media had previously reported, citing the matter, that Trump asked a group of party colleagues whether to dismiss Powell. The president presented a corresponding letter, it said, among other things, in the New York Times and the US broadcaster CBS News.
From the White House there was a confirmation that Trump advised on Tuesday evening with Congress Member of the Republican Party. Some of them also demanded Powell’s dismissal, and Trump thinks about it.
The President of the New York central bank, John Williams, emphasized the independence of the US Federal Reserve after attacks by US President Trump. However, he refused to comment on Trump’s hints directly. A Federal Reserve spokesman said Powell had no intentions – even if he was asked.
Trump is bothered by renovation costs for the central bank building
Trump criticizes the central bank’s monetary policy almost every day and demands an interest rate reduction from it – the key interest rate in the United States is currently in a range between 4.25 and 4.5 percent. In the past, Trump Powell had repeatedly attacked personally and referred to as a “weak head” or “Trump hater”. According to US law, however, the President cannot relieve the FED leader because of a dispute over interest policy.
The latest displeasure by the US president may have made high renovation costs for the building of the Fed headquarters in Washington, DC. Trump said “worried” because the work had cost $ 900 million more than planned. Trump therefore accused Powell of mismanagement. “There may be fraud in the game,” said the president.
The tenure of the 72-year-old central bank manager will end in the coming year. The president may nominate the successor, which must then be confirmed by the Senate. US Finance Minister Scott Bessent said on Tuesday that the search for a successor for Powell is already running.
With an interest cut, Trump hopes for higher investments because loans would be cheaper. In addition, it could be cheaper for the state to borrow money on the financial markets. The United States has been fighting with excessive government debts for years. A tax and expenditure law passed by Trump will drive this debt to a new high.
