The American president Donald Trump would “love” it if Federal Reserve Chairman Jerome Powell voluntarily resigned. Trump believes the head of the American central bank is “a stupid person” and states that “he has done a bad job.”
Trump said this on Friday after a question from a reporter in the White House. The president has been angry for some time because he wants Powell to lower interest rates to stimulate the economy. The Fed chairman has so far refused to do so.
Powell has repeatedly said that he is in no hurry to lower interest rates. According to him, there must first be more clarity about the impact of Trump’s policies on the economy. Lowering interest rates too early could reignite inflation.
Powell, whom Trump appointed as Fed chairman during his first term, has almost a year left in his position. He has so far no intention of resigning and stated earlier that the president cannot force him to do so.
The President of the United States cannot simply dismiss a Fed chairman for political reasons, but he could send him away if there is a valid reason for it. There must really be a question of misconduct.
Trump recently said he has three or four people in mind to succeed Powell. But Treasury Secretary Scott Bessent has downplayed speculation about a quick changing of the guard. According to him, a new appointment could possibly follow in January.
Trump again addressed Powell’s possible successor on Friday. “If I think someone wants to keep interest rates at the current level or something like that, I’m not going to appoint them. I’m going to appoint someone who wants to lower interest rates. There are plenty who want that.”