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Cnn
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President Donald Trump said he had “no intention of dismissing” the president of the federal reserve Jerome Powell on Tuesday.
The message is a brutal change compared to a day earlier, when Trump qualified Powell as a “major loser” in a social post of truth and suggested that he would dismiss him.
Trump recently maintained pressure on Powell to reduce interest rates – an action that the president of the Fed recently said that he would not rush or not take lightly. Trump appointed Powell as president of the Fed in 2017, but has been heading with him since.
US stock contracts increased Tuesday after opening hours. Dow’s term contracts have increased by more than 500 points, or 1.3%. The term contracts on S&P 500 increased by 1.6% and the term contracts on the NASDAQ was higher by 1.8% after the markets Rugi on Tuesday on the comments of the Treasury Secretary Scott Bessent which suggested that the United States could soften its unbearable trade war with China. In the oval office on Tuesday, Trump argued this assertion, saying that he would not seek more to punish China.
Trump said on Thursday that “the end of Powell could not come quickly enough”, exploding it for being “too late and bad” on inflation. The markets dropped that day in response, disturbing investors who relied on the fresh head Powell to direct the economy regardless of politics.
On Monday, the next day of negotiation after the Good Friday holidays, Trump increased pressure on Powell, sending the Dow more than 1,000 points.
Powell, for his part, refused to get into politics. He constantly avoided the subject and refused each opportunity to criticize Trump. Powell said he thought the Fed should remain independent.
But asked if he thought Trump could dismiss him, Powell said that the law did not allow a president to withdraw a president from the Fed. This is a bit questionable, but most legal researchers generally agree with Powell, except in extraordinary circumstances, as illegal Behavor.
“I would like to see him (Powell) being a little more active in terms of his idea of reducing interest rates,” said Trump on Tuesday at an event that sprang in the new dry president. “This is the ideal time to reduce interest rates.”
The Fed reduced the prices three times last year, more recently during the December political meeting. Trump accused Powell of playing in politics by refusing to reduce rates since returning to the White House, which the Fed chair has vehemently denied.
Powell and many of his colleagues have rather argued that the central bank must continue with caution the reduction rates, in particular given the uncertain and erratic trade policies of Trump.
The question of the way of reacting to the inaction of the Fed on cutting rates seemed to create divisions within the Trump administration. Last week, Bessent said that Fed’s independence was a “jewelry box that was to be preserved”.
However, the White House economic advisor Kevin Hassett told journalists on Friday that he wanted to examine the “new legal analysis” before determining whether Trump can or should end the president of the federal reserve Jay Powell – a break from the previous comments which he supported by the Central Bank independence.
This story has been updated with an additional context and developments.
