TSX runs higher on rate cut expectations
Investing.com -- President Donald Trump said Wednesday it’s "highly unlikely" he would fire Federal Reserve Chair Jerome Powell, though he didn’t completely rule out the possibility.
Speaking to reporters, Trump criticized Powell’s leadership at the central bank, calling him "terrible" and a "knucklehead" who has been "too late" to cut interest rates.
"We’re not planning on doing anything," Trump said, but added, "I don’t rule out anything, but I think it’s highly unlikely unless he has to leave for fraud."
Trump referenced a renovation project at the Fed’s headquarters, suggesting there could be improper handling of the nearly $2.7 billion project. "It’s possible there’s fraud involved with the $2.7 billion renovation... he didn’t have proper clearance," Trump said.
The comments follow a Tuesday night meeting where Trump reportedly asked House Republicans if he should fire Powell, with several sources telling CBS News that people in the room voiced approval. Rep. Anna Paulina Luna later wrote on X that she was "99% sure firing is imminent."
When asked if he had drafted a letter to fire Powell, Trump denied it, saying, "I talked about the concept of firing him. I said, what do you think? Almost every one of them said, I should. But I’m more conservative than they are."
Trump claimed the Fed should have lowered interest rates "a long time ago," arguing that Europe has cut rates "ten times in the short period of time, and we cut them none." He suggested the U.S. should be paying "three points lower" on interest rates, which he claimed would save "$1 trillion a year."
The president also criticized Powell’s decision to cut rates before the election, saying it was done "to try and help Kamala or Biden."