The US dollar took a sudden hit this afternoon amid fears Donald Trump would imminently sack Chair of the Federal Reserve.
Jerome Powell was branded a "knucklehead" by the US President in remarks on camera in the Oval Office as he criticised the banker for failing to reduce interest rates.
Trump went on to deny reports that Powell could soon be sacked, but not before the markets were spooked by the rumours.
The US President said that, "we have a lot of people who want [Powell's] job", adding that someone they would consider would be Kevin Hassett.
GB News
|Trump called Powell a 'knucklehead' and said there are a lot of people who would like his job
Hassett is an American economist and has been the director of the National Economic Council since 2025.
The dollar fell by 0.52 per cent to the Japanese Yen today, with the Euro up by 0.34 per cent on the dollar.
Speaking with the Crown Prince of Bahrain, the US President said he is more conservative than the Republican lawmakers on firing Powell.
Trump noted that Powell's board is not doing its job, but is not planning on making any changes soon.
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The US President said: "I don't rule out anything, but I think it's highly unlikely."
Referring to a recent White House and Republican lawmaker criticism of cost overruns in the $2.5billion (£1.86billion) renovation of the Fed's historic headquarters in Washington, Powell could be forced to leave for fraud, according to Trump.
Powell was nominated by Trump in late 2017 to lead the Fed and continued for a second term under Democratic President Joe Biden.
His term is due to expire on May 15, 2026.
REUTERS | Trump said Powell has been doing a 'lousy job'
Last week, the White House criticised the Fed's running after the director of the Office of Management and Budget, Russell Vought, sent Powell a letter saying Trump was "extremely troubled" by the $2.5billion (£1.86billion) renovation.
Powell responded by asking the US central bank's inspector general to review the project.
The central bank posted a "frequently asked questions" factsheet defending the costs.