WASHINGTON — U.S. President Donald Trump said on Thursday he has no plans to dismiss Federal Reserve Chair Jerome Powell, seeking to calm speculation over the future of the central bank's leadership after renewed scrutiny of Powell and criticism from the White House.
"I have no plan to do that," Trump said when asked whether he intended to remove Powell, while adding that his administration would continue reviewing matters related to the Federal Reserve. Trump said it was "too early" to determine what further action, if any, might be warranted, according to remarks made in an interview with Reuters.
The comments followed months of escalating tensions between Trump and Powell over monetary policy. Trump has repeatedly argued that the Federal Reserve has kept interest rates too high and has publicly urged the central bank to lower borrowing costs.
The administration's criticism has extended beyond monetary policy. The Justice Department has been examining issues related to the Federal Reserve's renovation of its Washington headquarters, although no court has established wrongdoing by Powell. Trump did not say the investigation provided grounds for removing the Fed chair, instead describing the administration as being in "a little bit of a holding pattern" while it determines its next steps.
Powell has maintained that the Federal Reserve's policy decisions are guided by economic data rather than political considerations. He has consistently defended the central bank's independence, a principle that economists and market participants regard as central to the Fed's credibility.
The question of whether a president can remove a Federal Reserve chair before the end of a term has long been viewed as legally and politically contentious. Existing law provides protections for members of the Federal Reserve Board, and any attempt to remove a chair could face legal challenges.
Financial markets have closely monitored Trump's comments on the Federal Reserve, with investors viewing the institution's independence as an important factor in maintaining confidence in U.S. monetary policy.
Trump's latest remarks appeared to ease immediate concerns that he was preparing to seek Powell's dismissal, though he did not rule out future action. His administration has continued to criticize the Fed's handling of interest rates while indicating it will keep reviewing issues surrounding the central bank's operations.
