US President Donald Trump said that Jerome Powell will not dismiss his position as head of the Federal Reserve (US Central Bank) before his term ended in May 2026, but he described Powell as “completely solid”, repeating the call to reduce interest rates.
Trump added in an interview with the NBC News network today, Sunday, that he expected the Federal Reserve to reduce interest rates at some point.
“He should reduce it. He will do so at some point. He prefers not to do it because he is not a fan of me. As you know, he simply does not like me because I think he is completely solid.”
When asked if he would be signed before the end of his term in 2026, Trump denied this categorically, saying, “No, no … Why do I do that? I will be able to replace him after a short period.”
The shares in Wall Street recorded a sharp decrease last month after Trump intensified his attack on Powell, which increased concerns about the independence of the central bank and shake the markets. After this sharp decline, Trump fell slightly.
And his comments that were broadcast today are the clearest indication so far that Trump will remain on Powell in his post, which may reassure the markets that the US President’s movements to turn the global trade system upside down through a wave of customs duties.
On April 2, Trump imposed 10% customs duties on most countries, in addition to higher fees on many US trading partners, before hanging them for 90 days. It also imposed customs duties by 25% on cars, steel and aluminum, 25% on Canada and Mexico, and 145% on China.
Conflicting statements
In the interview, Trump continued to make conflicting statements about the economy, rejecting fears of the decrease in GDP in the first quarter, but stressed that his predecessor Joe Biden is responsible for any economic deterioration.
When asked about the date on which it can be held responsible for economic performance, Trump said, “I think the good aspects will be Trump’s economy, while the bad aspects are Biden’s economy, because it has done a very bad job.”
He added that his administration deserves praise for its success in reducing energy and gasoline costs and reducing the American trade deficit.
Trump ignored fears that customs duties on China will lead to the high prices of consumers, saying that Americans simply do not need a large number of cheap commodities such as dolls and pens.
The Trump administration is negotiating with more than 15 countries on commercial agreements that can avoid imposing higher customs duties.
During the interview with NBC News, Trump refused to exclude some of the customs duties permanently. “No, I will not do that, because if someone thinks that it will be canceled, then why will they build (factories) in the United States?”
Trump admitted that he was “severely strict with China”, which almost cut trade between the two largest economies in the world, but he said that Beijing now wanted to conclude an agreement.
“We will not lose a trillion dollars … because we are not currently dealing with them. They want to conclude an agreement. They want it so much. We will see how things will go, but it must be a fair agreement.”
