Fed Chair Jerome Powell under pressure from Donald Trump; can the President fire him as interest rates hold steady at 4.25%-4.5%?
Federal Reserve to opt to hold interest rates steady at 4.25% to 4.5% as it did in its latest policy meeting on January 29. But, US president Donald Trump was not very happy with Fed Chair Jerome Powell's decision, as per a report.
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The Fed’s decision comes as inflation has started cooling and the job market remains strong after a triple rate cut in 2024. Even Powell pointed to solid economic growth, a stable job market, and inflation that's easing but still a little high, reported Benzinga.
Trump criticises latest Fed decision
However, Trump argued that the Fed is not doing enough to fuel growth, as per the report. Trump has always criticized the Fed for not adopting an aggressive means to cut rates, and, once again, he called out Powell for his inaction, according to Benzinga.
While the tense relationship between both is not new. Trump and Powell have been at odds for years, with Trump even suggesting he could fire him, as per the report.
Is firing Powell really an option for Trump?
The Federal Reserve Chair serve fixed terms and unless there’s a legal cause, the president can’t just fire them. Powell has made it clear he’s committed to serving out his full term, which lasts until 2028, reported Benzinga.
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