To hear Donald Trump tell it, there was just a big misunderstanding, and he really has “no intention” of firing Federal Reserve Chair Jerome Powell. The Washington Post reported:
President Donald Trump said he has “no intention” of firing Federal Reserve Chair Jerome H. Powell, despite his recent criticism and the pressure the president has put on the leader of the central bank to cut interest rates more quickly. Asked whether he intends to fire Powell if interest rates are not lowered soon, Trump said, “I don’t want to talk about that because I have no intention of firing him.” Pressed again about efforts to remove him, the president said there are “none whatsoever.”
For good measure, the president added that he “never” had any intention of trying to oust the Fed chair. “The press runs away with things,” he added.
Perhaps a timeline of recent events would help clarify matters.
April 17: In an item published to his social media platform, Trump wrote that the Fed chair is “always” wrong, adding, “Powell’s termination cannot come fast enough!”
April 17: Hours later, Trump said he’s never been “fond of” Powell, and suggested that the Fed chair — whom he first appointed — is “politically” conspiring against him.
April 17: Around the same time, Trump bragged about his power to fire the “terrible” Fed chair. “If I want him out, he’ll be out of there real fast, believe me,” the president told reporters, adding that he believes Powell is failing to “do the job.”
April 18: Kevin Hassett, the chair of Trump’s National Economic Council, said White House officials would “continue to study” whether Powell could be fired.
April 21: Trump published another online item, called Powell a “major loser” and accused the Fed chair of having secretly conspired to help Democrats win elections.
It was against this backdrop that the president effectively told reporters, “Who, me? Powell? Who said anything about trying to fire Powell?”
There’s no great mystery here: When Trump targeted the Fed chair, markets fell sharply, reinforcing the impression that investors care more about keeping Powell in place than keeping the president in place.
Trump might want to admit that he’s retreating, but it’ll probably be a while before he echoes his own rhetoric about “Powell’s termination.”
