Trump says he's not planning to fire Fed's Powell
"Such reports are not true," Trump said, while speaking to reporters at the White House.
"I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," he added, referencing criticism from the White House and Republican lawmakers over cost overruns in the US$2.5 billion renovation of the Fed's historic headquarters in Washington.
MARKETS REACT TO RUMOURS
The initial report sparked a drop in stocks and the US dollar, and pushed Treasury yields higher. Stocks pared some of their losses and Treasury yields pulled back slightly after Trump walked back the rumours.
Nevertheless, Trump renewed his criticism of Powell, calling him a "terrible" chair and accusing him of failing to cut interest rates.
He acknowledged discussing the idea of firing Powell with some Republican lawmakers, but said he remained more cautious than them about the approach.
Asked whether the White House had signaled any move to oust Powell, a Fed official pointed to the chair's repeated public statements that he intends to complete his term, which ends on May 15, 2026.
Powell was first nominated by Trump in 2017 and re-nominated for a second term by President Joe Biden in 2021.
FED RENOVATION UNDER FIRE
Last week, the White House escalated its criticism of the central bank over a costly renovation project. Office of Management and Budget Director Russell Vought sent Powell a letter saying Trump was "extremely troubled" by the renovation's expenses.
In response, Powell asked the Fed's inspector general to review the project and the central bank published a factsheet rebutting some of Vought's claims, including those about VIP dining rooms and elevators inflating costs.
BOND YIELDS SURGE ON FIRING RUMOURS
The yield on the 30-year US Treasury bond surged above 5% on Wednesday after the Bloomberg report suggested Trump was seriously considering firing Powell.
Yields spiked following news that Trump had met with Republican lawmakers Tuesday night, during which some reportedly urged him to remove Powell, challenging the long-held tradition of central bank independence.
Trump's later comments that it was 'highly unlikely' appeared to calm markets slightly, though uncertainty remained.
'The market is clearly skittish about any perceived threat to Fed independence,' one analyst said. 'Even vague comments from the president can have a real impact on investor sentiment.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
14 minutes ago
- Straits Times
US ‘moving at haste' to get Ukraine weapons under Trump plan, says envoy
Find out what's new on ST website and app. The site of a Russian drone strike in Dnipro, Ukraine, on July 17. BRUSSELS - The United States is moving to get weapons to Ukraine quickly under President Donald Trump's plan for Europe to buy arms, and is weighing selling Patriot air defence systems from its own stocks, Washington's envoy to Nato said on July 17. 'We are all moving with haste to facilitate this and get this done, and, you know, I think things are actually moving very quickly,' US ambassador to Nato Matthew Whitaker told journalists. 'But I can't verify a date that this will all be completed.' Mr Trump on July 14 announced a deal with Nato chief Mark Rutte for European Nato states to buy US weaponry – particularly advanced Patriot systems – and give it to Kyiv. The move marked a pivot for the US leader as his patience has worn thin with Russia's President Vladimir Putin for frustrating efforts to halt the war in Ukraine. European countries – including Germany, Norway, the Netherlands, Denmark and Sweden – have expressed willingness to buy the weaponry for Kyiv. But questions have been raised over where the systems will come from and how soon they can get to Ukraine as the war-torn country faces unprecedented Russian bombardments. Top stories Swipe. Select. Stay informed. Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore World US strikes destroyed only one of three Iranian nuclear sites, says new report Business 5 things to know about Kuok Hui Kwong, tycoon Robert Kuok's daughter and Shangri-La Asia head honcho Asia Air India probe of Boeing 787 fuel control switches finds no issues Singapore Man charged over manufacturing DIY Kpods at Yishun home; first such case in Singapore Singapore Sex first, then you can sell my flat: Women property agents fend off indecent proposals and harassment Singapore Two women jailed for submitting fake university certificates to MOM for employment passes Singapore Fatal abuse of Myanmar maid in Bishan: Traffic Police officer sentenced to 10 years' jail Mr Whitaker said that there was an 'ongoing conversation' about whether the United States would sell Patriots already available in its own military stockpiles. 'We're never going to put the United States at a strategic disadvantage, and we're going to make sure that we have everything we need,' he said. 'At the same time, I think we all acknowledge the desperate requirements that Ukraine currently, immediately needs on the battlefield and to protect their cities.' Other options mooted include European countries sending their systems to Kyiv now, and being able to purchase replacements as a priority from the United States. The deal comes as US allies nervously monitor a US review of its force deployments around the world. Washington has warned it could look to shift forces and weaponry away from Europe to focus more on China. Mr Whitaker said the United States was in 'daily conversations' with allies about the process ahead of possible announcements in coming months. 'We've agreed to no surprises and no gaps in the strategic framework of Europe,' he said. 'I don't think there's a lot of anxiety. I think there's just a lot of desire to know our plan is so that there can be other planning.' AFP
CNA
14 minutes ago
- CNA
Equities and dollar rise with encouragement from economic data and earnings reports
NEW YORK/LONDON :MSCI's global equity index was advancing on Thursday while the dollar rose as investors were encouraged by the latest crop of economic data and earnings reports. Data on jobless claims showed that the number of Americans filing new applications for unemployment benefits fell last week, pointing to steady job growth so far in July, though some laid off workers are experiencing long spells of unemployment because of a moderation in hiring. U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. "In economic data two key releases came out today: retail sales and jobless claims. Both were better than anticipated," said Mike Cornacchioli, investment strategy director and senior vice president at Citizens Private Wealth. "Those two illustrate the strength of the consumer and the labor market. So, a lot of the fears that were placed on the state of the U.S. economy are overblown and have failed to come to fruition at this point in time. Maybe they will some time down the line, but this data and the data that's come in lately has just reinforced the strength of the US economy." Cornacchioli also pointed to strong earnings reports as a boost for equities on Thursday. Taiwan Semiconductor Manufacturing, the world's main maker of advanced AI chips, posted record profits ahead of expectations. It warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter. Also, GE Aerospace lifted its profit outlook with jet engine deliveries rising as efforts to fix supply constraints showed results. MSCI's gauge of stocks across the globe rose 3.86 points, or 0.42 per cent, to 924.97. Europe's STOXX 600 index rose 0.92 per cent, boosted by strong earnings after record orders at Swiss engineering firm ABB and record $13.5 billion profits. And Wall Street followed Europe higher but at a more modest pace. At 11:17 a.m. the Dow Jones Industrial Average rose 72.83 points, or 0.16 per cent, to 44,327.61, the S&P 500 rose 20.73 points, or 0.33 per cent, to 6,284.32 and the Nasdaq Composite rose 142.41 points, or 0.69 per cent, to 20,872.92. Thursday's gains follow a dramatic wobble during the prior session when Trump said he was highly unlikely to fire Federal Reserve chair Jerome Powell. However he left the door open to the possibility of ousting him and renewed his criticism of the central bank chief for not cutting U.S. interest rates. In currencies, the dollar rose on Thursday after the economic data. Against the Japanese yen, the dollar strengthened 0.47 per cent to 148.56 as polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house in upcoming elections. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.37 per cent to 98.71. The euro was down 0.4 per cent at $1.1587. U.S. Treasury yields edged lower after briefly spiking following the economic data which showed the world's largest economy on a stable footing and supported the Fed's patient stance on monetary easing. The yield on benchmark U.S. 10-year notes fell 1.2 basis points to 4.443 per cent, from 4.455 per cent late on Wednesday while the 30-year bond yield fell 2.4 basis points to 4.9905 per cent from 5.015 per cent. However, the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 2.4 basis points to 3.909 per cent, from 3.885 per cent late on Wednesday. In commodity markets, oil prices rose even as global trade tensions appeared to cool, with analysts pointing to low inventories and renewed Middle East risks as factors supporting the market. U.S. crude rose 1.18 per cent to $67.16 a barrel and Brent rose to $68.99 per barrel, up 0.69 per cent on the day. Gold prices were lower after the upbeat U.S. economic data aided the Fed's cautious stance on rate cuts.
Straits Times
44 minutes ago
- Straits Times
Pakistani TV channels withdraw reports on Trump visit
Find out what's new on ST website and app. FILE PHOTO: U.S. President Donald Trump speaks, as he meets with Bahrain's Crown Prince and Prime Minister Salman bin Hamad Al Khalifa (not pictured), in the Oval Office at the White House in Washington, D.C., U.S., July 16, 2025. REUTERS/Nathan Howard/File Photo ISLAMABAD - Two leading Pakistani television news channels withdrew reports on Thursday that U.S. President Donald Trump planned to visit the South Asian nation, with one of them issuing an apology. Geo and ARY news channels had said earlier on Thursday that Trump was expected to visit Pakistan in September. But both later withdrew their reports. "Geo News apologises to its viewers for airing the news without a verification," it said. A senior management official at ARY told Reuters it backtracked after the foreign office said it had no knowledge of a visit. George W. Bush was the last U.S. president to visit Pakistan in 2006. "We have nothing to announce," a U.S. embassy spokesperson in Islamabad told Reuters, referring further questions on Trump's schedule to the White House. The White House did not immediately respond to a request for comment. Top stories Swipe. Select. Stay informed. Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore World US strikes destroyed only one of three Iranian nuclear sites, says new report Business 5 things to know about Kuok Hui Kwong, tycoon Robert Kuok's daughter and Shangri-La Asia head honcho Asia Air India probe of Boeing 787 fuel control switches finds no issues Singapore Man charged over manufacturing DIY Kpods at Yishun home; first such case in Singapore Singapore Sex first, then you can sell my flat: Women property agents fend off indecent proposals and harassment Singapore Two women jailed for submitting fake university certificates to MOM for employment passes Singapore Fatal abuse of Myanmar maid in Bishan: Traffic Police officer sentenced to 10 years' jail U.S.-Pakistan relations saw a major boost when Trump hosted Pakistan's army chief Field Marshal Asim Munir at the White House last month in an unprecedented meeting. REUTERS
