White House "continues to review" possibility of Powell's dismissal amid pressure to cut interest rates

Trump "Interest rates should be lowered"

U.S. President Donald Trump has demanded a cut in the benchmark interest rate, threatening to dismiss Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), while the White House stated that it is reviewing the issue of Powell's dismissal.

Kevin Hassett, Chairman of the White House National Economic Council (NEC), met with reporters at the White House on the 18th (local time) and responded to a question about the possibility of Powell's dismissal by saying, "President Trump and his team will continue to review the matter," according to reports from Reuters and AFP.

President Trump, in response to Powell's critical remarks about his tariff policy the previous day, said, "Powell's term should end quickly," and "If I want his resignation, he will step down very quickly." He also told reporters that day, "The benchmark interest rate should be lowered," and "If we have a Fed chairman who understands what he's doing, the benchmark interest rate will also go down."

He also claimed, "(Since I took office) the price of eggs has dropped by 87%," and "Prices have gone down. Grocery prices and gasoline prices have also gone down. Only fake news outlets report that prices are rising."

Powell, whose term runs until May next year, expressed concern in a speech on the 16th that "the level of tariff increases announced by the administration so far is much higher than expected," and "the impact on the economy is likely to be similar, including rising inflation and slowing growth."

He was asked after the presidential election last November whether he would step down if President-elect Trump asked for his resignation and replied, "I will not." When asked whether the U.S. President has the legal authority to dismiss the Fed Chairman, he said, "It is not allowed."

Se-Sung Oh, Hankyung.com reporter sesung@hankyung.com