Trump says he ‘maybe’ regrets picking Fed’s Powell

President Donald Trump stepped up his attacks on Federal Reserve Chairman Jerome Powell, saying he “maybe” regrets appointing him and demurring when asked under what circumstances he would fire the central bank chief.

Almost a year since nominating Powell to the post, Trump told The Wall Street Journal in an interview Tuesday that he was intentionally sending a direct message that he wanted lower interest rates, even as he acknowledged that the central bank is an independent entity.

Trump said in the interview that Powell “almost looks like he’s happy raising interest rates” and that it’s “too early to tell, but maybe” he regrets appointing him.

Trump sidestepped a question on what circumstances would lead him to remove Powell. “I don’t know,” the president said. That contrasted with his response to a similar question on Oct. 11, when he answered, “I’m not going to fire him.”

Powell has so far brushed off the attacks, noting the Fed is independent and arguing by raising rates gradually it’s just seeking to normalize monetary policy in an “extraordinary” economy. He’s also suggested that the central bank needs to keep its eye on possible financial froth — the trigger for the last two recessions — as well as inflation for signs of overheating.

Asked on Wednesday about the president’s broadside against the central bank, Sen. Mike Crapo of Idaho declined to comment about whether he’s pleased with Powell. “I’m not going to get into that issue,” said Crapo, chairman of the Senate Banking Committee.

Investors so far don’t see the Fed bending to the pressure to slow the pace of hikes. If doubts were to emerge in markets about the central bank’s credibility, then investors could push up borrowing costs, ultimately slowing the economy and hurting stocks thus meaning Trump’s lobbying had backfired.