Trump Inflation and Recession Response: Denies Powell Firing, Predicts Strong Economy

President Donald Trump on May 4 denied plans to fire Federal Reserve Chair Jerome Powell before his term ends and dismissed fears of a recession, asserting that the U.S. economy will become the strongest in history.In an interview with NBC News, conducted on May 2 and released later, Trump was asked whether he intended to remove Powell before his term expires in May 2026. He firmly denied the idea, responding, “No, no, no,” and added, “Why would I do that?”

Speaking about the Fed’s interest rate policies, Trump said, “He should cut it (the rate). At some point, he will.” He also stated, “He doesn’t do it because he’s not my fan,” and commented, “He doesn’t like me because I think he’s completely rigid.”

Trump Responds to Economic Contraction and Inflation Concerns

Trump addressed concerns over the U.S. economy shrinking by 0.3% in the first quarter and said, “Everything is fine.” He described the downturn as “transitional” and added, “We’re going to do fantastically.”

When asked if he was worried about a prolonged slowdown, Trump answered, “No,” while acknowledging uncertainty: “Anything can happen, but we will have the best economy in history.”

Trump also admitted that some goods might experience short-term price increases but emphasized that falling energy prices are more significant for consumers, according to NBC News.

TikTok Sale Negotiations Ongoing

Regarding negotiations over the sale of Chinese-owned platform TikTok under the so-called TikTok ban law, Trump said, “I hope it gets done.” On the possibility of extending the deadline if no deal is reached, he added, “We can extend if needed, but I don’t think it will be necessary.”

BY YOONJAE JUNG [jung.yoonjae@koreadaily.com]