#TrumpVsPowell

"Trump: No Plans to Fire Fed Chair Powell

President Trump stated he has no intention of removing Federal Reserve Chairman Jerome Powell, despite previous criticism and tweets suggesting otherwise. Trump expressed desire for Powell to lower interest rates, but emphasized his respect for the Fed chair's independence.

Trump also hinted at reducing tariffs on Chinese goods, which sparked relief in markets. US stock futures and the dollar rose, while gold prices pulled back.

Behind the scenes, advisers warned Trump that firing Powell would lead to market volatility and potential legal battles. The Federal Reserve Act allows removal of governors only "for cause," making it difficult to fire Powell without serious misconduct.

Trump's comments calmed investor nerves, but economists caution that politicizing the Fed could raise borrowing costs and undermine its independence."