📰 Trump Backs Off Fed Clash: No Plans to Remove Jerome Powell, But Urges Aggressive Rate Cuts
Former U.S. President Donald Trump has made headlines once again by clarifying that he does not intend to fire Federal Reserve Chair Jerome Powell if he wins the 2024 election. However, Trump didn’t hold back in his criticism of the Fed’s current monetary policy, calling on the central bank to “cut interest rates immediately” to ease economic pressures and prevent a potential recession.
Trump’s remarks mark a notable shift in tone compared to his previous presidency, during which he frequently clashed with Powell over interest rate hikes. While the former president now appears willing to maintain leadership continuity at the Fed, his focus remains on aggressively lowering rates to stimulate economic growth ahead of a possible downturn.
📉 A Renewed Focus on Interest Rates
Speaking at a recent political event, Trump warned that maintaining high interest rates for much longer could lead to serious economic consequences, including dampened investment and job growth. He emphasized that the current borrowing costs are unsustainable for both businesses and American households.
"Interest rates are too high, and they’re choking the economy," Trump stated. "We need to act fast, or we’ll face unnecessary damage."
🔍 Continuity Over Conflict — But with Pressure
Trump’s assurance that he would not seek to replace Jerome Powell may be seen as an effort to project stability to financial markets, while still maintaining political pressure on the Federal Reserve. Analysts suggest this approach is designed to strike a balance between appearing predictable to investors while still promoting an agenda of looser monetary policy.
During his time in office, Trump repeatedly criticized Powell and even discussed the possibility of demoting or firing him — a move that would have been unprecedented and legally questionable. His new approach may reflect a broader political strategy aimed at capturing moderate voters and reassuring Wall Street.
📊 Market Reactions & Economic Outlook
Trump’s call for rate cuts aligns with ongoing debates among economists about whether the Fed has tightened monetary policy too much. While inflation has cooled in recent months, concerns about growth and credit conditions continue to mount. Markets responded cautiously to Trump’s comments, with some investors interpreting the remarks as a sign that monetary easing could return if Trump regains office.
If the Fed does pivot to rate cuts in the coming months, it could offer relief to struggling sectors such as housing and small business — both of which have been heavily impacted by tighter credit conditions.
📌 Conclusion
Trump’s latest comments reflect a more calculated economic strategy than during his first term. While showing support for institutional continuity by keeping Powell in place, he simultaneously emphasizes the urgency of monetary easing. This dual approach could shape the direction of U.S. economic policy in 2025 — especially if Trump returns to the White House.
Read more: Trump Signals Potential Tax Relief for China Amid U.S.-China Trade Strategy.