US President Donald Trump’s sudden shift in rhetoric towards Federal Reserve Chair Jerome Powell reflected the private lobbying of his senior advisers, who urged him to back off his incendiary attacks on the central bank. The president’s change of heart came after several administration officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, cautioned that further disruption in financial markets would be detrimental.
Trump’s comments had previously sparked concerns among market observers, with some fearing he might finally act on his plans to remove Powell from office. However, the president’s recent remarks have been welcomed by many analysts, including outside economic adviser Stephen Moore, who said Trump “did the smart thing” by softening his stance.
The decision was seen as a response to the turmoil in financial markets, which had surged Wednesday following overnight stock market movements. The Fed has maintained its independence, with Chairman Powell stating that he plans to complete his term despite concerns about Trump’s comments.
Analysts warned that any attempt to remove Powell would be extremely rare and likely trigger an unprecedented combination of lower prices for US bonds and stocks. Nevertheless, the softening of Trump’s rhetoric is seen as a positive sign for financial markets and the Federal Reserve’s independence.
Source: https://www.washingtonpost.com/business/2025/04/23/trump-backs-off-powell-attacks