Mubasher: US President Donald Trump denied that he threatened to demote the chair of the Federal Reserve, Jerome Powell, to the level of board governor, Bloomberg reported, citing the president’s interview with NBC.

However, President Trump suggested that he would “be able to do that if [he] wanted.”

“I think the economy’s so strong we’re going to bull through it, [but] I’m not happy with his actions […] no, I don’t think he’s done a good job,” Trump said, adding that his predecessor Barack Obama “had somebody that kept rates very low,” in reference to former Fed head Janet Yellen.

Trump has repeatedly criticised the Fed for gradually raising rates four times last year, a departure from an almost three decades of caution in the White House about publicly commenting on monetary policy.

Having grown frustrated with Powell, Trump reportedly talked with confidants over firing the Fed head, believing that he had the authority to replace him, Bloomberg reported, citing sources familiar with the matter.

Powell on Wednesday stated his intention to serve his full four-year term, saying the “the law is clear” in this respect.

The Federal Reserve Act offers protection for Fed governors against removal by the president except “for cause.”

While the phrase is understood as requiring a proof of a legal misconduct or neglect of duties, a disagreement over monetary policy would not qualify as a cause.