Trump Talks Tariffs & Powell on Meet The Press

2 minutes read

President-Elect Donald Trump appeared on Meet the Press Sunday, making headlines with his comments on Federal Reserve Chair Jerome Powell and his robust endorsement of tariffs as an economic and diplomatic tool.

JPow: Asked by host Kristen Welker if he plans to remove Powell as Fed Chair, Trump responded, “No, I don’t think so. I don’t see it.” However, he suggested he could compel Powell to step down if he chose. “If I asked him to, he probably wouldn’t. But if I told him to, he would.”

  • The remarks offer reassurance to those concerned about potential disruption to the Federal Reserve’s leadership, signaling Trump is unlikely to push for Powell’s ouster despite past criticisms of his rate policies.

Tariffs: Trump reiterated his steadfast belief in tariffs, describing them as a “beautiful word” and a key lever for reshaping trade and foreign relations.

  • Economic Benefits: “It’s going to make us rich,” Trump argued, accusing Canada and Mexico of benefiting disproportionately from trade with the U.S. “We’re subsidizing Canada to the tune of over $100 billion a year. We’re subsidizing Mexico for almost $300 billion. We shouldn’t be—why are we subsidizing these countries?”
  • Diplomatic Tool: Trump also touted tariffs as a way to prevent conflict. “I have stopped wars with tariffs by saying, ‘You guys want to fight, it’s great. But both of you are going to pay tariffs to the United States at 100%.’”

Market Impact: Markets should be happy with Trump’s comments easing fears of Powell being forced out. However, his rhetoric on tariffs could revive concerns over potential trade tensions, particularly with key U.S. partners like Canada and Mexico.