President Donald Trump backed off his attacks on Jerome Powell after his threats to sack the Federal Reserve chairman spooked investors and sent the stock market spiraling.
“I don’t want to talk about that because I have no intention of firing him,” Trump said of Powell at the Oval Office on Tuesday.
It’s a marked about-face from Trump’s recent Truth Social posts calling for the termination of the Fed chief, whom he has dubbed “Too Late” for refusing to slash interest rates to offset the impact of his devastating tariffs.
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“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote on Monday as all three major indexes—the Dow, S&P 500, and Nasdaq Composite—logged losses of up to 972 points.
“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” Trump said in another Truth Social post last week. “Powell’s termination cannot come fast enough!”
On Tuesday, however, Trump accused the press of “running away” with reports about a possible Powell ouster as he rehashed his Truth Social posts in a softer tone.
“I have no intention of firing him,” he said when pressed further on the issue. “I would like to see him be a little more active in terms of his idea to lower interest rates. It’s a perfect time to lower interest rates. If he doesn’t, is it the end? No, it’s not, but it would be good timing. It could have taken place earlier.”
Trump appointed Powell as Fed chairman in 2017. Powell’s term runs until May 2026, and he can only be forced out “for cause.”
U.S. stock futures surged Tuesday following Trump’s remarks. Dow futures rose 1.7 percent, S&P 500 futures grew 2 percent, and Nasdaq futures climbed 2.1 percent.
The three stock market benchmarks ended Tuesday in the green after Treasury Secretary Scott Bessent signaled that “de-escalation” of the U.S.-China trade war was coming in the “very near future.”
Bessent said that “no one thinks the current status quo is sustainable” during a private investor summit in Washington, D.C., according to CNBC.
White House Press Secretary Karoline Leavitt also told reporters on Tuesday that Trump was “setting the stage” for a deal with China, though she and the president did not provide specifics.
“We’re going to be very nice. They’re going to be very nice, and we’ll see what happens,” Trump said. “But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved.”
