Trump, Conscious of Financial Market Backlash, Says "It Would Be Nice If Powell Resigned on His Own"

Since last year, Donald Trump, the President of the United States, who has been calling for interest rate cuts and claiming to oust the central bank chief, has stepped back, conscious of dissatisfaction within the financial market. He said there is little chance he would directly oust him and hopes the person would step down voluntarily.

According to the right-wing American media outlet Real America's Voice, Trump mentioned Jerome Powell, the chairman of the Federal Reserve System (Fed), in a phone interview with the media on the 16th (local time). Powell's term as chairman runs until May next year. When asked if he thinks Powell will resign before his term ends, Trump replied, "It would be great if he wants to resign," adding, "It's up to him." Trump stated, "People say if I fire him, it will disrupt the market," and claimed, "Many people say he should be dismissed because of the 'fraud' he is committing at the Fed."

The Fed has been conducting renovations at its headquarters in Washington DC since 2021, and as of 2022, the cost of the construction has surged to 2.5 billion dollars (about 3.4765 trillion won). The Fed stated that the construction costs increased due to rising labor and material costs. However, figures from the White House and the Republican Party criticized the Fed for installing unnecessary luxury items such as rooftop gardens, artificial waterfalls, VIP elevators, and marble decorations. At the same time, they claimed that the construction cost increased by 700 million dollars compared to the initial plan.

Trump, a former real estate developer, pointed out the Fed's renovation project, saying, "The budget exceeded by 1 billion dollars," and "This person (Powell) is the one running the Fed." He described the Fed's headquarters as "one of the most expensive buildings in the world" and said, "I guarantee the contractor is making a lot of money." Trump emphasized, "They are spending 2.5 billion dollars on this project, and I am very good at such matters. I need to look into it."

Trump, pressured by massive government deficits and debt, has been urging the Fed since last year to lower the benchmark interest rate to reduce the government's burden and focus on economic stimulus. However, Powell, conscious of the inflation that may arise from Trump's tariff war, kept the interest rate unchanged for four consecutive times this year. On the 15th, CBS and other American media outlets reported, citing sources, that Trump asked Republican lawmakers about dismissing Powell during a meeting, and the lawmakers agreed. On the 16th, the S&P 500 index fell by 0.7% during the day. Amidst this, Wall Street's "big players" defended Powell and indirectly criticized Trump for interfering with the central bank. On the 15th, Jamie Dimon, CEO of JPMorgan Chase Bank, warned, "Playing with the Fed can backfire and result in the opposite of what was expected."


pjw@fnnews.com Park Jong-won Reporter