Washington: President Donald Trump stated he was "highly unlikely" to dismiss Federal Reserve Chair Jerome Powell, following private discussions suggesting he was considering such a move. In a White House meeting with about a dozen House Republicans, Trump discussed the "concept" of firing Powell, who has been a target due to his refusal to lower interest rates as Trump desires.
According to TRTworld.com, Trump mentioned that many lawmakers at the meeting, which included members of the House Freedom Caucus, supported the idea of firing Powell. However, opinions within the Republican Party are divided, with Senate Republicans taking a more cautious approach. Some senators have expressed support for Powell's performance, pending an inspector general's review of a construction project.
US stocks responded positively, closing higher on Wednesday after Trump's indication of retaining Powell. The Dow Jones Industrial Average rose by 0.53 percent, while the Nasdaq and the S&P 500 also saw gains. Treasury yields in the bond market remained mostly stable.
In a speech, Senator Thom Tillis warned against making the Federal Reserve another government agency subject to presidential control, emphasizing the potential negative impact of such a move. Senator John Kennedy acknowledged some disagreements with Powell but expressed belief in his impartiality and job performance.