logo
Trump ‘not currently firing Fed Chair, but not ruling out'

Trump ‘not currently firing Fed Chair, but not ruling out'

Gulf Today16-07-2025
US President Donald Trump said Wednesday that he was not currently planning to fire Federal Reserve Chair Jerome Powell, but added that he did not rule it out.
Trump's mixed messaging, after months of escalating attacks on the independent central bank chief, sent the yield on the 30-year US Treasury bond surging above five per cent.
Asked about whether he would eject Powell, Trump said he is 'doing a lousy job but no, I'm not talking about that.'
'I don't rule out anything, but I think it's highly unlikely,' he added.
Trump noted that he would in any case be able to make a change at the top of the Fed when Powell's term ends next year.
'We'll pick somebody that's good,' Trump said. 'We want to see lower interest rates.'
Powell's term at the helm of the US central bank does not conclude until May 2026, and his term as a Fed governor is up at a later date.
The Fed chair has said that he did not plan to step down early, and considers the central bank's independence over monetary policy to be a matter of law.
A Supreme Court order recently suggested that Fed officials cannot be taken out of their jobs over policy disagreements, meaning they have to be removed 'for cause,' which could be interpreted to mean wrongdoing.
The US leader has repeatedly lashed out at Powell for not lowering interest rates more quickly, calling the central banker a 'numbskull' and 'moron' recently.
Late Tuesday, Trump suggested that a $2.5 billion renovation plan at the Fed could be sufficient cause to force Powell out. Asked by a reporter if the spending was a fireable offense, Trump said: 'I think it sort of is.'
The US leader on Wednesday floated the possibility of 'fraud' involved with the renovation, but provided no details substantiating the allegation.
The president has received political backing from his party for firing the Fed chair, US media reported Wednesday, noting that he told a room of Republican lawmakers that he would do so.
A White House official told CNBC: 'They expressed approval for firing him. The president indicated he likely will soon.'
The New York Times reported that Trump showed off a draft letter to oust Powell at his meeting with about a dozen House Republicans late Tuesday, although the president said Wednesday that he only 'talked about the concept' of removing Powell instead.
Trump added Wednesday that many people want the top job at the Fed, saying: 'I think it's one of the easiest jobs in government, you show up once a month and you make a statement about where the economy is going, and we're going to raise or lower interest rates.'
US House Speaker Mike Johnson on Wednesday said he believes it would be beneficial to have new leadership at the US Federal Reserve, although he's not sure the president has the authority to fire Chair Jerome Powell, according to media reports.
'I do I believe new leadership would be helpful at the Fed,' a Wall Street Journal reporter on X quoted Johnson as saying. Punchbowl News, in a separate X post, reported Johnson said he's 'really not sure' if the president can fire Powell.
Financial markets took a hit after reports about Trump's plans, although they recouped some losses after his later remarks.
The dollar initially fell by one percent against the euro before regaining ground, while safe haven asset gold logged gains.
Wall Street's main indexes stumbled, while the yield on the 30-year US bond surged on market worries.
The Dow Jones Industrial Average was flat while the broad-based S&P 500 Index and tech-focused Nasdaq both lost 0.1 per cent.
Meanwhile, gold prices jumped on Wednesday following news reports that US President Donald Trump planned to fire Federal Reserve Chair Jerome Powell, but trimmed gains after Trump denied the claim.
Trump said he was not planning to fire Powell, but declined to rule anything out, citing an investigation into cost overruns on a $2.5-billion Fed renovation project.
Spot gold rose 0.9% to $3,352.49 per ounce, as of 1233 pm after rising as much as 1.5% earlier.
US gold futures were up 0.7% at $3,360.80.
'Headlines suggesting Trump was considering firing Powell drove gold prices higher ... He later clarified it's highly unlikely. Gold markets were whipsawed by the back and forth,' said Daniel Ghali, commodity strategist at TD Securities. Israel launched powerful airstrikes in Damascus, damaging the Defence Ministry and striking near the presidential palace. The attack added to geopolitical worries and supported purchases of safe-haven gold. On the trade front, the European Commission prepared to target $84.1 billion worth of US goods for possible tariffs if trade talks with Washington fail after Trump threatened last week to impose 30% tariffs on imports from the EU.
Adding support to gold was data that showed US producer prices were unexpectedly unchanged in June from a 0.3% rise in May. It followed Tuesday's data that showed overall consumer prices rose 0.3% in June, up from 0.1% in May, signalling the Federal Reserve may continue to exercise caution before cutting interest rates.
Agencies
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China seeks reduction of US tariffs and tech export controls
China seeks reduction of US tariffs and tech export controls

Gulf Today

time38 minutes ago

  • Gulf Today

China seeks reduction of US tariffs and tech export controls

US and Chinese officials began a second day of talks in Stockholm on Tuesday to resolve longstanding economic disputes and step back from an escalating trade war between the world's two biggest economies. The meetings may not yield immediate large breakthroughs but the two sides could agree to another 90-day extension of a tariff truce struck in mid-May. It may also pave the way for a potential meeting between US President Donald Trump and Chinese President Xi Jinping later in the year, though Trump on Tuesday denied going out of his way to seek one. The delegations met for more than five hours on Monday at Rosenbad, the Swedish prime minister's office in central Stockholm. US Treasury Secretary Scott Bessent was seen arriving at Rosenbad on Tuesday morning after a separate meeting with Swedish Prime Minister Ulf Kristersson. China's Vice Premier He Lifeng also arrived at the venue. Neither side made statements after the first day of talks. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after reaching preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the United States, and a deal with Japan. The Financial Times reported on Monday that the United States had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year. Trump pushed back against suggestions he was seeking a meeting with Xi. 'This is not correct, I am not SEEKING anything! I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest!' he wrote on Truth Social. Meanwhile, in Washington, US senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents, and Taiwan, emphasizing security and human rights, which could complicate the talks in Stockholm. Taiwan President Lai Ching-te is also set to delay an August trip his team had floated to the Trump administration that would have included stops in the United States, sources familiar with the matter told Reuters on Monday. The potential visit would have infuriated Beijing, possibly derailing the trade talks. China claims Taiwan as its own territory, a position Taiwan rejects, and denounces any show of support for Taipei from Washington. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. Among broader economic issues, Washington complains that China's state-led, export-driven model is flooding world markets with cheap goods, while Beijing says US national security export controls on tech goods seek to stunt Chinese growth. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption − a decades-long goal for US policymakers. Analysts say the U.S.-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. China stocks ended higher on Tuesday as a new round of Sino-US trade talks continued, while the Hong Kong benchmark declined with some investors booking profits near the month-end. China's blue-chip CSI300 Index and the Shanghai Composite Index reversed morning session's losses, closing up 0.39 per cent and 0.33 per cent, respectively. Hong Kong benchmark Hang Seng dropped 0.34 per cent, while Hang Seng Tech fell 0.35 per cent. Market sentiment cooled slightly as investors awaited details from the ongoing US-China trade talks that started on Monday in Stockholm. China faces an August 12 deadline to reach a durable tariff agreement; both China and US are expected to push for an extension of the trade truce. 'A truce extension would calm markets... a confrontational tone or vague outcomes could reignite fears of renewed tariffs down the line, resulting in a risk-off sentiment,' Charu Chanana, Saxo chief investment strategist, said in a note on Tuesday. Reuters

Shares mixed, euro dips as tariff costs counted
Shares mixed, euro dips as tariff costs counted

Zawya

time2 hours ago

  • Zawya

Shares mixed, euro dips as tariff costs counted

LONDON - Wall Street futures pointed to a buoyant open on Tuesday ahead of earnings reports from a number of companies and the Federal Reserve's policy meeting that starts later in the day. S&P 500 futures ticked up 0.3%, while Nasdaq futures added 0.5%, riding on hopes for upbeat results from mega caps this week that include Apple, Meta Platforms , Microsoft and Amazon. The dollar index climbed 0.4% to 98.951 after the rush out of short dollar positions lifted it 1% overnight, while it eased a one-week high on the yen to stand at 148.69 . Yields on 10-year Treasuries inched up 3 basis points to 4.392%, having crept higher on Monday as markets braced for another steady decision on interest rates from the Federal Reserve. Futures imply a 97% chance the Fed would keep rates at 4.25%-4.5% at its meeting on Wednesday and reiterate concerns that tariffs will push inflation higher in the short term. Analysts also assume one, or maybe two, Fed officials will dissent in favour of a cut and supporting wagers for a move in September. The odds could change depending on a slew of U.S. data this week including gross domestic product for the second quarter, where growth is expected to rebound to an annualised 2.4%, after a 0.5% contraction in the first quarter. Figures on job openings are due later on Tuesday that will help refine forecasts for the crucial payrolls report on Friday. "The equity rally has narrowed, valuations are stretched and market internals are flashing caution, and consumer data -particularly around housing and retail - show signs of fatigue," said Bruno Schneller, managing director at Erlen Capital Management, Zurich. "This is the start of a 'show-me' phase - for both policymakers and corporates. Markets will demand confirmation: from earnings, from macro, and from the Fed," Erlen added. Canada's central bank also convenes on Wednesday and again is widely expected to hold rates at 2.75%. TARIFF ECHOES U.S. equity moves follow record closing highs for the S&P and the Nasdaq on Monday in volatile trading after the U.S. struck a trade agreement with the European Union, while the Dow remained just about 200 points short of an all-time high. The U.S.-EU trade deal, announced on Sunday, halved threatened 30% U.S. tariffs on EU imports to 15% and bolstered expectations that more such agreements will follow ahead of President Donald Trump's looming August 1 deadline. Trump also flagged a "world tariff" rate of 15%-20% on all trading partners that were not negotiating a deal, among the highest rates since the Great Depression of the 1930s. "While the worst-case scenario was averted, the implied EU tariff increase from 1% in January is a significant tax increase on EU exports," wrote economists from JPMorgan in a note. "This is a very big shock that unwinds a century of U.S. leadership in global free trade," they said. "While we no longer see a U.S. recession as our baseline from this shock, the risk is still elevated at 40%." The euro fell 0.4% to $1.1543, after retreating 1.3% overnight in its largest drop since mid-May. European shares recovered after Monday's sell-off. Europe's broad STOXX 600 was up 0.6%, helped by some positive reactions to quarterly earnings. French and German stock indexes rose over 1%. Novo Nordisk, one of Europe's biggest companies by market cap, named Maziar Mike Doustdar as its new chief executive after the abrupt removal of its previous CEO in May. Shares in the company were down as much as 29.8% by 1149 GMT, wiping off over 80 billion euros in market cap at one point. An air of caution saw MSCI's broadest index of world shares tick down about 0.2% after China stocks ended higher on Tuesday as a new round of Sino-U.S. trade talks continued, while Japan's Nikkei lost 0.8%. A further risk to world growth came from a sudden spike in oil prices after Trump threatened a new deadline of 10 or 12 days for Russia to make progress toward ending the war in Ukraine or face tougher sanctions on oil exports. In commodity markets, prices for copper and iron ore were under pressure while gold was roughly flat at $3,316 an ounce . Brent was about 20 cents higher at $70.22 a barrel, while U.S. crude up 17 cents to $66.90. (Editing by Sam Holmes, Bernadette Baum and Mark Heinrich)

Mideast Stocks: Earnings drag Saudi, Abu Dhabi down, while lifting Dubai amid cautious trade outlook
Mideast Stocks: Earnings drag Saudi, Abu Dhabi down, while lifting Dubai amid cautious trade outlook

Zawya

time3 hours ago

  • Zawya

Mideast Stocks: Earnings drag Saudi, Abu Dhabi down, while lifting Dubai amid cautious trade outlook

Saudi Arabia and Abu Dhabi edged lower on Tuesday on lacklustre second-quarter results, while Dubai advanced, bucking major Gulf peers, supported by strong corporate performance and optimism around future positive earnings announcements. Saudi Arabia's benchmark index <.TASI> eased 0.6%, pressured by a string of disappointing earnings across key sectors. Arabian Drilling < plunged 10% after posting a sharp drop in second-quarter profit, well below analysts' expectations, and announcing a suspension of cash dividends for 2025. Arabian Pipes < fell more than 3.5% after missing quarterly estimates, while Jamjoom Pharmaceuticals < dropped nearly 5% as its shares traded ex-dividend. Dubai's benchmark index <.DFMGI> rose 0.2% to hit over a 17-1/2-year high, logging its fifth consecutive session of gains, as hopes remain high ahead of key earnings, mainly from the real estate sector. Gains were driven by a 1% jump in toll operator Salik maintaining the same stretch of wins. Elsewhere, Dubai Taxi Company climbed nearly 7.5% after its second-quarter results topped market expectations and it announced a higher half-year dividend than last year. The Abu Dhabi index <.FTFADGI> edged down 0.2% as mixed corporate earnings offset optimism from the previous week's strong performance that was expected to sustain momentum. Abu Dhabi's largest developer, Aldar Properties , slipped over 3% after announcing a marginal second-quarter revenue decline sequentially, despite reporting a record order backlog of 62.3 billion dirhams as of the end of June. Among other laggards, IHC-owned investment firm Multiply Group sank 3.3% after its quarterly profit halved year-on-year. Qatar's benchmark index <.QSI> fell 0.6%, weighed down by broad-based sectoral declines, as investors booked profits following a multi-year rally, with Qatar Islamic Bank losing nearly 2%. Investors remained focused on global trade risks following the U.S. and European Union's weekend deal, which reduced the threat of a 30% tariff to a 15% levy on most EU imports. While the agreement eased immediate fears, sentiment remained cautious as markets weighed the higher duties against the 1% to 2% level before Trump returned to the White House. Trump's ongoing tariff policies continue to fuel worries over global growth, with potential slowdowns in trade and consumption threatening energy demand and the fiscal stability of oil-dependent Gulf economies. Outside the Gulf, Egypt's blue-chip index <.EGX30> was flat following a recent record peak. (Reporting by Amna Mariyam in Bengaluru; Editing by Vijay Kishore)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store