WASHINGTON— U.S. President Donald Trump on Friday downplayed reports that his administration was preparing to remove Federal Reserve Chair Jerome Powell, saying no final decision had been made while continuing to criticize the central bank's leadership and monetary policy.
Trump's comments came after renewed speculation over Powell's future prompted market attention and fresh debate over the independence of the Federal Reserve. The president said he was not moving forward with immediate plans to dismiss Powell, while adding that his administration was continuing to review issues related to the central bank, including an ongoing Justice Department investigation into the Federal Reserve's headquarters renovation project.
"I don't have any plan to do that," Trump said in remarks previously reported by Reuters, while adding that it was "too early" to determine whether any future action would be warranted. He said the administration remained "in a holding pattern" as it evaluated the matter.
The White House has repeatedly criticized Powell over interest-rate policy and has questioned the management of a multibillion-dollar renovation of the Federal Reserve's Washington headquarters. Trump has argued for lower borrowing costs and has frequently blamed the central bank for failing to reduce interest rates quickly enough.
Legal experts have noted that the president's authority to remove a Federal Reserve chair remains uncertain and could face significant judicial scrutiny. Recent Supreme Court decisions have reaffirmed protections for the Federal Reserve's monetary policy independence while leaving broader questions about other aspects of the institution unresolved.
Powell has not indicated any intention to step down before the end of his term. Federal Reserve officials have consistently maintained that monetary policy decisions are guided by economic data and the central bank's statutory mandate rather than political considerations. In recent public remarks, Federal Reserve Chair Kevin Warsh, who succeeded Powell earlier this year, likewise emphasized that the institution's credibility depends on its independence from political pressure.
Financial markets have closely monitored developments surrounding the Federal Reserve's leadership because of the potential implications for monetary policy and investor confidence. As of Friday, no official action had been announced to remove Powell, and the administration had not indicated any immediate change in the Federal Reserve's leadership.
