Trump expresses desire for Federal Reserve Chairman Powell to resign

This would boost the economy and save the government many billions in debt servicing - but according to experts, it would also fuel inflation.

When asked by a journalist how he felt about calls for Powell to resign, Trump said in the White House: "I wish he would resign - if that's what he wants. He's done a lousy job." Powell is simply a "stupid person". With a significantly lower prime rate, the government would save "hundreds of billions" a year on debt servicing, Trump argued. This could potentially save up to 950 billion US dollars, Trump said.

US president hopes for successor to the head of the central bank

He expects Powell's successor to lower interest rates. Trump will nominate the successor, but the Senate must approve the appointment. The Federal Reserve Board decides on the key interest rate - not its head alone, as Trump likes to suggest.

Powell, whom Trump initially appointed as head of the central bank during his first term of office, will remain at the helm of the Fed for just under a year. The key interest rate of the legally independent central bank is currently at a high level in the range of 4.25 to 4.5 percent.

The central bank argues that the labor market in the US remains robust and inflation is still slightly above its long-term target of two percent. Therefore, the logic goes, there is no need to lower the key interest rate in the short term. The central bank is also worried about Trump's unpredictable trade policy. New and higher tariffs on imports into the USA could cause consumer prices to rise further, warns Powell.