U.S. Federal Reserve Chairman Jerome Powell (shown above left) won't be fired despite earlier reports he could be amid recent stock market troubles, said a top administration official, White House economic adviser Kevin Hassett (above right), on Wednesday. Asked by reporters whether he had confidence in Mr Mnuchin, Mr Trump answered "yes I do", calling the treasury chief "very talented, very smart person".
The dollar rose and U.S. equity futures advanced yesterday after a volatile start as investors assessed the comments. Visit MarketWatch.com for more information on this news.
Trump shifted his criticism again to the Fed, saying it "raised the interest rates too fast, that's my opinion".
The assurance comes amidst the repeated attacks on the central bank by the US President, who most recently said that the Fed is the "only problem" US economy last Monday.
Hassett also said the president was happy with Treasury Secretary Steven Mnuchin, who reportedly faced his own tensions with the president. Amid concerns of political gridlock and government shutdown, sluggish economic growth and squeezed economy, and, a report indicating informal discussions of possible firing of Federal Reserve Chairman Jerome Powell, the Wall St.
The broader S&P 500 fell 2.7%, to close more than 19% from its record high, and less than 1% away from the 20% drop that would put it in bear market territory and ending an nearly ten-year bull market in stocks. Big-cap tech companies have also created panic in the market because their stocks have been among the biggest decliners, after reporting earnings that investors saw as disappointing.
As stocks rose for most of Mr Trump's first two years in office, the President frequently pointed to the gains as a sign of his success.
"The only problem our economy has is the Fed", Trump tweeted a few days ago.
One reason stocks have been declining is the partial United States government shutdown over Mr Trump's demand for billions of dollars for a wall on the Mexican border - his top campaign promise.
Trump has repeatedly and publicly lambasted Powell over the central bank's raising of interest rates. "But I think they will get it pretty soon".