Washington, 19 April (H.S.): White House economic adviser Kevin Hassett confirmed on Friday that President Donald Trump and his team were still considering the possibility of firing Federal Reserve Chair Jerome Powell, highlighting the potential implications for the Fed's independence and global markets. Hassett indicated that the president would continue to evaluate this option when asked if the dismissal of Powell was more plausible than before. Trump's recent escalation of his ongoing dispute with Powell included accusations of playing politics due to Powell's reluctance to lower interest rates, asserting he could remove Powell real fast.

Trump emphasized the need for a Fed chair who understands economic dynamics, insisting that interest rates should be reduced. Hassett distanced himself from his earlier views, expressed in a 2021 book, wherein he warned that firing Powell might damage the Fed’s reputation and economic stability. He suggested that circumstances had changed, prompting a reevaluation of their stance based on potentially new legal insights.

There was no immediate clarification regarding the new legal analysis referenced. Meanwhile, Powell, asserting his legal protection against removal, affirmed his intention to complete his term as chair, which ends in May 2026. He also stated that he does not believe the current Supreme Court case regarding Trump’s authority to dismiss federal officials would impact his position at the Fed.

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Hindusthan Samachar / Jun Sarkar