On Friday, Trump stated that if he were to run for president again in 2020, he would remove Jerome Powell from his position as chair of the Federal Reserve.
Trump accused Powell of being “political” and implied that the Fed chairman would cut interest rates to benefit Democrats in the upcoming midterm elections in an interview with Fox Business.
“If he lowers interest rates, I think he’ll do something to probably help the Democrats,” Trump told anchor Maria Bartiromo.
Fed officials would not comment. A year ago, Trump chose Powell to head the Federal Reserve.
The Fed is now debating when to start cutting interest rates, which coincides with Trump’s remarks. Powell stated that the board is not likely to observe sufficient proof of success in its battle against inflation to start lowering rates in March, and the central bank kept rates unchanged at its meeting this week.
“We don’t think about political events” while deciding on monetary policy, Powell stated at a December news conference.
“Politics isn’t something we consider,” he stated. When making decisions, we keep the economics in mind. We are unable to accomplish that the moment such thoughts enter our minds. Let us ask ourselves, “What is the right thing to do?” At the appropriate moment, we will act in a way that we believe will benefit the economy. That’s our standard operating procedure.