1. President Donald Trump stated that he has "no intention" of firing Federal Reserve Chair Jerome Powell before his tenure at the helm of the U.S. central bank concludes next year.
2. Recently, Trump has intensified his criticism of Powell and has not ruled out the unprecedented step of firing him.
3. U.S. stock futures surged on major indexes following Trump's latest remarks.
President Donald Trump said on Tuesday that he has "no intention" of firing Federal Reserve Chair Jerome Powell before his tenure at the helm of the U.S. central bank concludes next year.
"Nothing at all," Trump said in the Oval Office when asked to clarify that he was not seeking to remove Powell. "Never would do that."
This comment reflects a significant shift in Trump, who has recently intensified his criticism of Powell and has not ruled out the unprecedented step of firing him.
U.S. stock futures surged on major indexes following Trump's latest remarks.
Trump, who has pressured the Fed chair to cut rates in hopes of boosting economic growth, said about Powell last week, "If I wanted him out of there, he would be gone very quickly."
White House economic advisor Kevin Hassett said on Friday that Trump and his aides are actively considering the possibility of firing Powell.
Powell, who was appointed by Trump during his first presidential term, will serve as the Fed chair until May 2026. He has stated outright that the president cannot dismiss him under the law.
On Monday, Trump made his strongest criticism yet of Powell, calling him a "big loser" and urging him to cut interest rates immediately.
But when asked on Tuesday afternoon about the prospect of firing Powell, Trump said that "the press has overreported it."
"No, I have no intention of firing him," Trump responded to reporters after the swearing-in ceremony of Paul Atkins as chair of the Securities and Exchange Commission.
"I want to see him a little more aggressive about his idea of cutting rates," the president added. "This is the perfect time to cut rates."
Trump's comments came after major U.S. stock indexes closed significantly higher, recovering from a sharp sell-off on Monday, partly related to fears from Trump's attacks on Powell.
Some critics and analysts warn that the president's dismissal of the chair of the Federal Reserve, which operates independently of the government, would cause panic in the markets.
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