Former President Donald Trump stated in an interview with Fox Business that he would not reappoint Jerome Powell as Federal Reserve chair if he were to return to the White House next year. Trump characterized Powell as “political” and insinuated that Powell might lower interest rates to benefit Democrats in the upcoming fall elections.
During the interview with host Maria Bartiromo, Trump expressed his concerns about Powell’s potential actions, suggesting that lowering interest rates could be a move to support Democrats electorally. Trump appointed Powell as Fed Chair in 2017.
Trump’s remarks coincide with the ongoing deliberations at the Federal Reserve regarding the timing of interest rate adjustments. Despite calls for rate decreases, the Fed decided to maintain rates at their current levels during its recent meeting. Powell emphasized that the board’s decisions are guided by economic considerations rather than political factors.
In response to Trump’s criticism, Powell reiterated the Fed’s commitment to making decisions based on what is deemed best for the economy, emphasizing that political considerations do not influence monetary policy formulation.
Powell’s stance reflects the Fed’s longstanding practice of prioritizing economic stability and growth over political considerations when making policy decisions.
