The Zhitong Finance App learned that US President-elect Donald Trump said he has no plans to replace Federal Reserve Chairman Jerome Powell after returning to the White House. “I didn't see this plan,” he said. Powell's term as chairman of the Federal Reserve expires in May 2026. He said in an interview last month that if Trump asks him to resign, he will not resign early.

Trump said on NBC's “Meet the Media” program last Sunday, “I think if I let him do it, he'll do it,” “but if I ask him to do it, he probably won't.”

Powell made it clear in the days following the election that he was prepared to defend the independence of the Federal Reserve from political pressure, and insisted that the new president had no power to fire him or other senior Federal Reserve leaders.

Trump has previously said he should have a say in monetary policy and interest rate setting. In an interview with foreign media in October, he said, “I think I have the right to say, 'I think you should increase or decrease a little bit. ' I don't think I should be allowed to order directly, but I think I have the right to comment on whether interest rates should rise or fall.”

Trump also mocked the Federal Reserve Chairman's role as “the greatest job in government,” saying, “You come to the office once a month and say, 'Let's take a look and throw a coin. '”

Although Trump appointed Powell, he studied whether Powell could be fired or demoted during his first term after the Federal Reserve raised interest rates several times. A Federal Reserve spokesperson declined to comment on Trump's latest remarks.

Powell, on the other hand, said that the relationship with the incoming US government is not expected to be strained. At a press conference on November 7, he was asked whether he would resign if Trump asked him to resign, and gave a negative answer.

The threat of tariffs

Trump once again threatened to impose tariffs on US trading partners if necessary, and specifically mentioned the trade balance between the US and Mexico and Canada, and tried to suggest that US trade with these two countries was tantamount to subsidizing their economies.

“Why are we subsidizing these countries? If we're going to subsidize them, let them become a state.” “We are subsidizing Mexico, we are subsidizing Canada, we are subsidizing many countries around the world.”

When asked what economists generally think tariffs will raise consumer prices and whether they can guarantee that American households won't pay more, Trump said, “I can't guarantee anything. I can't guarantee tomorrow.”

Last month, Trump threatened to impose a new round of tariffs, saying that if Mexico and Canada do not take more measures to prevent illegal drugs and undocumented immigrants from entering the US, he would impose a 10% tariff on goods from China and a 25% tariff on all products from Mexico and Canada, disrupting the market.

President-elect Trump's first concrete threat to US trading partners since his election is a clear reminder of his eagerness to use tariffs to advance his economic agenda, which dates back to his first term in the White House.

In his latest comments, Trump did not mention these two requirements, which suggests that Canada and Mexico may face greater pressure on trade issues.

Trump said, “What I want to do is have a fast, level playing field.”

Trump continues to warn America's NATO allies that they “must pay the bills,” echoing his stance of causing transatlantic friction during his first term. He declined to unconditionally promise the US to stay in NATO during his second term, and mentioned, “If they pay their bills, if I think they treat us fairly, my answer is definitely yes, I will stay in NATO.”

During the election campaign in February of this year, Trump said that he once said to a European leader that if NATO member states do not fulfill their defense spending promises, he will abandon member states and allow Russia to attack. This statement aroused alarm in Europe and also attracted criticism from US President Joe Biden.

US Citizenship

On his first day in office, Trump once again vowed to abolish birthright citizenship, saying the US is the only country with such a law. “We want to end this practice because it's ridiculous,” he said.

The 14th amendment to the US Constitution stipulates that people born in the US can obtain US citizenship. Trump promised that he would abolish it through executive action if possible, and said he had tried it before, but later “had to resolve COVID-19 first.”

Trump also said he would not restrict access to abortion medicine, although he appreciated the US Supreme Court's overthrow of Roy v. Wade, and said abortion is now a state-level issue.

When asked if he promised not to limit the supply of abortion pills during his tenure, he agreed, then mentioned that Biden changed his mind when pardoning his son Hunter, who had vowed not to pardon him several times before last week. Trump said, “So things have really changed. But I don't think that's going to change.”