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6d ago

Trump Declares No Plans to Fire Fed Chair Powell Following Market Turmoil

The president's statement eased market fears after days of speculation over Jerome Powell's potential ouster, highlighting legal and institutional barriers to such a move.

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Jerome Powell, governor of the U.S. Federal Reserve and President Donald Trump's nominee as chairman of the Federal Reserve, speaks as Trump, left, listens during a nomination announcement in the Rose Garden of the White House in Washington, D.C., U.S., on Thursday, Nov. 2, 2017. If approved by the Senate, the 64-year-old former Carlyle Group LP managing director and ex-Treasury undersecretary would succeed Fed Chair Janet Yellen. Photographer: Andrew Harrer/Bloomberg via Getty Images

Overview

  • President Trump announced he has 'no intention' of firing Federal Reserve Chair Jerome Powell, calming markets after heightened speculation about Powell's removal.
  • The Dow Jones Industrial Average and other stock futures rallied following Trump's statement, reversing losses from earlier concerns over the Fed's independence.
  • Trump's recent criticisms of Powell, including public comments calling him a 'loser,' fueled market volatility and raised questions about the Fed's autonomy.
  • Legal protections under the Federal Reserve Act and a 1935 Supreme Court ruling make removing Powell before his term ends in 2026 a significant challenge.
  • Advisers had been exploring potential successors, with names like Kevin Warsh and Larry Kudlow floated, though replacing Powell would require overcoming legal and Senate confirmation hurdles.