Update: Trump does not cConfirm plans to remove Powell 🔴📌

Former President Donald Trump once again criticized Federal Reserve Chair Jerome Powell, calling him “too late” and a “knucklehead,” but clarified that he currently does not plan to remove him. Trump emphasized that “Powell’s board is not doing its job” and that the U.S. “should be saving a trillion dollars a year thanks to lower interest rates.” However, he noted that he isn’t considering firing the Fed chair unless evidence of fraud emerges. He added that “it’s not a hard job” and mentioned economist Kevin Hassett as a possible future candidate.

This stance marks a slight softening of his earlier rhetoric. Earlier today, The New York Times reported that Trump had prepared legal documents to remove Powell on grounds of 'gross incompetence.' While nothing has been confirmed, the speculation alone rattled markets—the U.S. dollar weakened, gold prices rose, and investors worried about a potential threat to the independence of monetary policy.

Trump’s tone now appears more measured. A planned meeting between Powell and House Financial Services Committee Republicans was reportedly canceled, and unofficial sources suggest Trump may have been informed that there is no solid legal basis for firing the Fed Chair. For now, Powell’s position seems secure, but Trump’s continued dissatisfaction and potential return to the White House keep the possibility of change alive.

Following the NYT article, the EURUSD pair strengthened significantly. However, after Trump’s comments, the dollar recovered some losses, and the currency pair's earlier gains have partially retraced.