President Donald Trump said Wednesday he's "not planning" to fire Federal Reserve Chairman Jerome Powell. That contradicted a report that he was "likely" to do so. The S&P 500, which abruptly fell on that report, erased losses following Trump's comments.
"We're not planning on doing it," Trump told reporters in the White House. "It's highly unlikely."
Earlier Wednesday morning, multiple reports cited a White House official saying that Trump told Republican lawmakers Tuesday night that he would likely fire Fed chief Powell soon.
"The President asked lawmakers how they felt about firing the Fed Chair. They expressed approval for firing him. The President indicated he likely will soon," the official told reporters. He added that Trump hasn't made a final decision.
Trump, cabinet members and some GOP lawmakers have attacked Powell repeatedly in recent months, with the president demanding that the Fed slash interest rates. More recently, White House officials have criticized the cost of renovating the Federal Reserve's D.C. headquarters, raising speculation that Trump could try to remove Powell for cause. The Supreme Court recently indicated that the president does not have the authority to remove Fed officials at will.
Trump, in his White House comments Wednesday, did bring up the Fed's remodeling costs, but stressed that his biggest complaint with Powell remains over interest rates.
Trump firing Powell, whose term ends next spring, could roil financial markets and raise concerns about the Fed's independence.
The S&P 500 was flat in early afternoon trade after briefly skidding 0.7% late morning. The benchmark index had been roughly flat before the Trump-Powell news.
The dollar, which was up for a ninth straight session, reversed solidly lower but has since pared losses.
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