Trump claims he won't fire Fed chair Powell amid criticism

On April 22, 2025, United States President Donald Trump publicly stated that he has no plans to terminate Jerome Powell, the Federal Reserve Chair, during a press conference in the Oval Office. This statement marked a significant shift in Trump's recent pattern of critique directed at Powell, suggesting a desire for more aggressive monetary policy adjustments. Despite previously expressing dissatisfaction and launching harsh remarks towards Powell, Trump emphasized that he was not pursuing any action to remove him, highlighting that he never intended to do so, a claim he made while navigating the complexities of the Federal Reserve's independent status. Market reactions to Trump's statements showcased the immediate effects of his comments, as U.S. stock futures rose sharply across major indexes shortly after the press conference. Investors appeared relieved by the absence of immediate threats regarding Powell's tenure, which led to the Dow jumping over 1,100 points at its peak. This volatility was in response to a previous selloff that had occurred the week prior, largely attributed to Trump's escalating criticisms of Powell, who is set to serve as Fed Chair until May 2026. The concerns among investors primarily revolved around the potential implications of Trump successfully removing Powell, which could disrupt the traditionally independent nature of the Fed. Trump's prior statements had illustrated his frustration with Powell, particularly around monetary policy decisions such as interest rate adjustments. Although he conveyed a desire for lower interest rates to stimulate economic growth, Powell maintained that the Federal Reserve operates under a mandate that shields it from political interference. Trump's shift in tone was significant; he clarified his lack of intention to fire Powell during a period of intense scrutiny, suggesting he might be adjusting his approach as markets responded to his fluctuating rhetoric. As the situation evolved, Trump's remarks served as a pivotal moment that underscored the tensions between political leaders and economic policy. It also highlighted the delicate balance the Federal Reserve must maintain amid pressures from the presidency, with Powell emphasizing his commitment to pursuing policy designed to stabilize prices and maximize employment without succumbing to political pressures.