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Defiant Fed boss says Trump won't make him quit

10 July 2019 21:32 (UTC +04:00)

The world's most powerful central banker has brushed off criticism from Donald Trump, saying he would not step down if the US president asked him to, APA reports citing BBC.

Federal Reserve chairman Jerome Powell told a hearing in Washington: "The law gives me a four-year term and I fully intend to serve it."

Mr Trump has criticised the Fed for not cutting interest rates.

But the president could soon get his wish, as Mr Powell also hinted at a cut soon to bolster the US economy.

Mr Powell is giving evidence to the House of Representatives Financial Services Committee, the first of two days of testimony on Capitol Hill.

He and the Fed have faced sustained criticism for not cutting rates, which Mr Trump blames for unnecessarily slowing the US economy. "Our Federal Reserve doesn't have a clue!" was one of the president's tweets.

Asked at Wednesday's hearing if Mr Powell would step down if requested, he replied "no". Pressed on whether he thought the president did not have the authority to remove him, he said: "What I have said is the law gives me a four-year term and I fully intend to serve it."

Disagreement over interest rate policy could ease, however, as Mr Powell signalled that a cut could come soon in remarks that sent the S&P 500 surging past 3,000 points for the first time and prompting a fall in the dollar.