President Trump Not Taking Action Against Fed Chairman Powell (Yet)

Tuesday, Wite House economic adviser Larry Kudlow said President Trump is not considering any changes to Fed Chairman Jerome Powell’s status following a report that the White House had explored the possibility of demoting him.

Mr. Kudlow spoke to reporters at the White House ahead of the FOMC’s meeting this week that comes on the back of mounting pressure from the President to cut interest rates. The Fed is expected to leave rates unchanged but could lay the groundwork for a cut later this year, perhaps in July.

“The Fed is independent. They will act on their own time, in their own way,” Mr. Kudlow said.

People familiar with the matter have said that the White House looked into the legality of demoting Mr. Powell in February soon after President Trump discussed firing the Fed Chairman.

Mr. Kudlow told reporters that the White House was not considering demoting Chairman Powell now, but he declined to comment on whether such action had been or is being considered. 

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