Trump: No Plan to Fire Powell, Discussion of More Rate Hikes 'Premature'

BlockBeats News, January 15th: U.S. President Trump said on Wednesday local time that although the Department of Justice is conducting a criminal investigation of Federal Reserve Chairman Powell, he currently has no plans to fire Powell. However, he also stated that it is "too early" to say what action he will eventually take.

When asked if he would attempt to remove Powell from office, Trump told Reuters in an interview, "I have no such plan at the moment." When asked if this investigation provided him with a reason to do so, Trump added, "Right now, we are in a 'wait-and-see mode' between him and us. We will decide what to do. But I can't discuss it in depth right now. It's too early, too premature."

Powell's term as Federal Reserve Chairman will end in May, but he will not have to leave the Federal Reserve Board in Washington until 2028.

Trump hinted that he is inclined to nominate former Federal Reserve Governor Kevin Warsh or National Economic Council Director Kevin Hassett to succeed Powell. He also stated that the possibility of U.S. Treasury Secretary Scott Bessent assuming the position has been ruled out because "he wants to stay in his current job." (FX678)