- US President Donald Trump says he has “no intention of firing” Jerome Powell after repeatedly criticising the head of the Federal Reserve.
But he added that he would like Powell to be “a little more active” when it comes to cutting interest rates.
Speaking in the Oval Office on Tuesday, Trump also said he is optimistic about improving trade relations with China.
Last week, the president intensified his criticism of the Fed chief, calling him “a major loser”. The comments sparked a selloff of stocks, bonds and the US dollar, but financial markets have since been recovering from those losses.
The latest remarks came after the director of the National Economic Council Director Kevin Hassett said on Friday that Trump was looking into whether it would be possible to sack Powell.
During his first term in the White House, Trump nominated Powell to lead the central bank in 2017. Then-President Joe Biden nominated him for a second four-year term at the end of 2021.
The Fed has not cut rates so far this year, after lowering them by a percentage point late last year, a stance Trump has heavily criticised.
It is unclear whether Trump has the authority to fire the Fed chair. No other US president has tried to do so.
Also on Tuesday, Trump said he would be “very nice” in negotiations with Beijing and tariffs would fall if there was a deal, but not to “zero”.
Investors feared that pressure on Powell to lower interest rates could cause prices to rise at a time when trade tariffs are already seen boosting inflation.
