There has been no discussion of having U.S. Federal Reserve Chairman Jerome Powell step down from his position, White House economic adviser Larry Kudlow told reporters on Friday after the Federal Reserve cut interest rates this week.
U.S. President Donald Trump “has been outspoken in his views about the Fed chairman,” said Kudlow, the director of the National Economic Council. But “there is no conversation to get rid of [Powell] whatsoever,” he said.
He noted that the Fed has “changed their direction” in its monetary policy, and that “monetary policy is in a much better direction now.”
Trump has expressed disappointment in Powell repeatedly, and also criticized the central bank’s latest cut on short-term interest rates on Oct. 30—the third cut this year.
“Dollar & Rates are hurting our manufacturers. We should have lower interest rates than Germany, Japan and all others,” he added, alluding to how central banks in Europe and Japan have shifted their rates into negative territory.
“We are now, by far, the biggest and strongest Country, but the Fed puts us at a competitive disadvantage. China is not our problem, the Federal Reserve is! We will win anyway,” Trump wrote.
The Fed’s move on Oct. 30 reduces the short-term rate it controls—also referred to as the federal funds rate—to a range between 1.5 percent and 1.75 percent.
The federal funds rate is a benchmark that influences many consumer and business loans, including mortgages, auto loans, and student loans.
By lowering the cost of borrowing, lower interest rates are intended to stimulate the economy by encouraging more borrowing and spending.
Powell said at a press conference on Oct. 30 that the committee believed “monetary policy is in a good place.”
“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly. [The] policy is not on a preset course,” he said.
