Former U.S. President Donald Trump announced that he would not reappoint Federal Reserve Chairman Jerome Powell if he wins the 2024 presidential election and returns to power.
According to the U.S. political media Politico on the 2nd (local time), former President Trump said in an interview with Fox News that Chairman Powell is "political" and that he is expected to lower interest rates in the fall to help the Democratic Party in the presidential election.
“I think he (Powell) will do something to help the Democrats,” former President Trump said, adding that he “looks like he will lower interest rates.”
The Federal Reserve did not react to this interview with former President Trump.
Chairman Powell was nominated by former President Trump and has served as Chairman of the Federal Reserve since February 2018. He also caused friction with former President Trump's blatant demand for interest rate cuts. Former President Trump claimed that the U.S. economy was adversely affected by the strong dollar due to the Federal Reserve's failure to lower interest rates during his tenure.
Former President Trump's remarks came as the Federal Reserve was weighing the timing of an interest rate cut.
After announcing the freeze on the base rate on the 31st of last month, Chairman Powell dismissed the ‘March interest rate cut theory’, saying that the possibility of a March interest rate cut was not high.
He said at a press conference last December that he does not consider “political events” in monetary policy.
Chairman Powell said, “We don’t consider political issues,” and “We only think about what is right for the economy.”
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