Trump says he would allow Fed Chair Powell to finish his term if re-elected
Wall Street Journal chief economics correspondent Nick Timiraos says the balance of risks have been shifting for the Federal Reserve on 'The Claman Countdown.'
Republican presidential candidate Donald Trump said that he would allow Federal Reserve Chair Jerome Powell to finish his term at the helm of the central bank if he wins the November election.
«I would let him serve it out, especially if I thought he was doing the right thing,» Trump said, according to a Bloomberg News interview that took place in June.
Powell's term as chair ends in May 2026, while his position on the Fed board continues until 2028.
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President Donald Trump shakes hands with Jerome Powell, governor of the U.S. Federal Reserve and Trump's nominee as chairman of the Federal Reserve, right, during a nomination announcement in the Rose Garden of the White House in Washington, D.C., on (Photographer: Olivier Douliery/Bloomberg via Getty Images / Getty Images)
Trump also warned that the Fed should not cut interest rates before the November election, which could give the economy – and President Biden – a lift. Wall Street widely expects the Fed to cut interest rates twice by the end of the year, with the first reduction coming in September.
«It's something that they know they shouldn't be doing,» Trump said.
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Although he was nominated to lead the central bank by Trump in 2017, Powell faced relentless criticism from the former president, who repeatedly threatened to fire the Fed chief and admonished him as a «bonehead» for raising interest rates. In nominating Powell, Trump also broke with precedent in passing over Janet
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