Why Should Trump Allow Powell to Complete His Term as Federal Reserve Chairman?
Trump says he would let Fed Chair Powell finish his term if he wins in November
- The Republican presidential candidate said he would allow the Fed chair to finish his term if he wins in November.
- Federal Reserve Chair Jerome Powell, who took the helm at the central bank in 2018, has strained relationships with former President Donald Trump.
- In 2019, Trump called for lower interest rates, arguing the rate policy at the time put the U.S. at a disadvantage against other nations. He took to social media to criticize the central bank leader.
- In February of this year, Trump told Fox Business he wouldn’t reappoint Powell.
Donald Trump will allow Federal Reserve Chair Jerome Powell to complete his term at the central bank if he wins the November election, the Republican presidential candidate said.
“I would let him serve it out, especially if I thought he was doing the right thing,” Trump told Bloomberg Businessweek. President Joe Biden nominated Powell to serve a second four-year term as Fed chief in May 2022.
Powell is also a Fed governor, a position he will hold until Jan. 31, 2028.
These comments mark an about-face from the former president, who has had a strained relationship with the central bank leader.
Powell took the helm as Fed chief in February 2018, and he had faced criticism from then-President Trump over the years on interest rate policy.
Back in 2019, Trump criticized the central bank and its leader — even as policymakers lowered rates three times that year, eventually to a target range of 1.5% to 1.75% — arguing the U.S. was at an economic disadvantage against other countries with lower rates.
As recently as February of this year, Trump told Fox Business that he would not reappoint Powell to lead the Fed. “I think he’s political,” he told journalist Maria Bartiromo. “I think he’s going to do something to probably help the Democrats, I think if he lowers interest rates.”
