Trump backs off on Jerome Powell, says he has ‘no intention’ of firing the Fed chair

• President Donald Trump said he has no plans to fire Fed Chair Jerome Powell over interest rates.
• Investors and market watchers have been concerned about Trump's feud with Powell.
• Stock futures and the dollar spiked following Trump's comments.

President Donald Trump said Tuesday he has no intention of firing Federal Reserve Chair Jerome Powell, despite wishing the Fed would cut interest rates.

Trump, who has feuded with Powell for years, told reporters at the White House: "I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates."

"This is 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," he said, adding that Powell could have lowered rates even earlier.

White House economic advisor Kevin Hassett had said last week the president and his team were studying the idea of firing Powell, but Trump denied the reports and said Tuesday he "never" planned to fire him.

The White House did not respond to a request for comment from Business Insider.

Markets rallied following Trump's comments, with stock futures and the dollar rising after stocks rebounded earlier in the day following Monday's market volatility.

Trump also said Tuesday the tariffs on China were "very high" and would "come down substantially."

Trump's comments came after he recently ramped up his criticism of Powell, whose term as Fed chair is set to end in May 2026.

Last week, Trump said Powell's "termination cannot come fast enough," raising questions about whether the president would have the authority to fire him.

On Monday, Trump urged Powell to lower interest rates in a post on Truth Social, calling him "Mr. Too Late, a major loser."

The White House clash with the Fed concerned investors, and stocks, bonds, and the dollar declined on Monday.

Market watchers have said that Trump could be setting up the Fed and Powell to take the blame if the economy falls into a recession this year, which economists are increasingly saying is likely.