Larry Kudlow says, Fed ChairmanPowell’s job is safe for now. Mr. Kudlow is the Top economic adviser to President Donald Trump.
“There is no effort to remove him,” he said in a TV interview Tuesday.
Mr. Kudlow said he supports the central bank’s independence and that there are no plans presently to change Powell’s job.
President Trump has repeatedly blasted Mr. Powell over the Fed’s interest rate increases last year. The President has told confidants that he believes he has the authority to replace Mr. Powell as Fed chairman, demoting him to the level of board governor, according to people familiar with the matter. But President Trump has said he does not plan to do it.
Mr. Kudlow reiterated his call for the Fed to “take back” its interest rate hike in December. The Fed raised interest rates 4X last year, with the last increase at the end of the year drawing especially heavy criticism from The Trump Administration. Fed officials have shifted their outlook since then, and in June they opened the door to a rate cut.
Mr. Powell is scheduled to appear before Congress Wednesday and Thursday in his semi-annual testimony on monetary policy to legislators.