U.S. President Donald Trump speaks at the White House in Washington, D.C., U.S., April 22, 2025.
Kevin Lamarque | Reuters
President Donald Trump on Tuesday said he has “no intention” of firing Federal Reserve Chair Jerome Powell before his term leading the U.S. central bank ends next year.
“None whatsoever,” Trump said in the Oval Office when asked to clarify that he did not seek Powell’s removal. “Never did.”
The comment represents a dramatic shift for Trump, who has recently ramped up his rhetoric against Powell and declined to rule out the possibility of taking the unprecedented step of firing him.
U.S. stock futures rose sharply across major indexes following Trump’s latest remarks.
Trump, who has heaped pressure on the Fed chair to cut interest rates in hopes of goosing economic growth, said last week of Powell, “If I want him out of there, he’ll be out real fast.”
Federal Reserve Chair Jerome Powell departs after speaking with Dr. Raghuram Rajan, a Professor of Finance at the University of Chicago’s Booth School, during an Economic Club of Chicago event on April 16, 2025 in Chicago, Illinois.
Vincent Alban | Getty Images
White House economic advisor Kevin Hassett said Friday that Trump and his aides were actively studying the possibility of firing Powell.
Powell, whom Trump appointed during his first term as president, is set to serve as Fed chair until May 2026. He has flatly stated that the president cannot remove him under the law.
Trump on Monday fired off his most incendiary criticism of Powell yet, calling him a “major loser” and urging him to lower rates immediately.
But when asked on Tuesday afternoon about the prospect of firing Powell, Trump said, “the press runs away with things.”
“No, I have no intention of firing him,” Trump told reporters after a ceremony swearing in Paul Atkins as chairman of the U.S. Securities and Exchange Commission.
“I would like to see him be a little more active in terms of his idea to lower interest rates,” the president added. “This is a perfect time to lower interest rates.”
Trump’s remarks came after major U.S. stock indexes closed significantly higher, rebounding from a steep sell-off on Monday that was linked at least in part to fears stoked by Trump’s attacks on Powell.
Some critics and analysts warn that the president removing the chair of the Federal Reserve, which has traditionally operated with independence from the government, would cause panic in the markets.
— CNBC’s Erin Doherty contributed to this report.