Trump makes a U-turn on Powell

US President Donald Trump said on Wednesday evening (April 23) that he had not called Federal Reserve chair Jerome Powell to discuss lowering interest rates but that he “might”.

The previous day, Trump said he had no intention of firing Powell. This comment came only days after White House economic adviser Kevin Hasset told the press the administration was studying whether it could dismiss the Fed chair.

Trump said he had no plans “whatsoever” of doing so and that he “never did”, before blaming the press for running with the story.

“We think that it’s a perfect time to lower the rate and would like to see our chairman be early or on time as opposed to late. Late’s not good,” said Trump, continuing his criticism that Powell was too slow to move on monetary policy.

“If he doesn’t is it the end? No,” Trump said. “It’s not, but it would be good timing. It could’ve taken place earlier. But no, I have no intention of firing him.”

The president had stated on April 17 that Powell’s termination could not come fast enough.

The markets reacted poorly to Hasset’s comments but rebounded after Trump said he had no intention of dismissing Powell. Following Hasset and Trump’s comments, the US dollar index reached a three-year low. The Washington Post reported that the Treasury secretary Scott Bessent and commerce secretary Howard Lutnick had urged the president to dial back his war of words with Powell.

The chief executives of US retail groups Walmart, Target and Home Depot had also lobbied Trump on April 21 to soften his stance against both the Fed and the US’s major trading partners and allies.