Overview

• President Trump stated he has no intention of firing Federal Reserve Chair Jerome Powell, reversing earlier threats to remove him.
• Trump previously criticized Powell as a 'major loser' and 'Too Late,' demanding immediate interest rate cuts to boost the economy.
• The Federal Reserve has resisted further rate cuts, citing concerns over inflation exacerbated by Trump's tariffs on trading partners.
• Markets, which had reacted negatively to firing threats, stabilized following Trump's reassurance about Powell's position.
• Federal law protects the Fed chair from arbitrary removal, underscoring the independence of the central bank from political influence.