Trump said he did not intend to dismiss Powell after attacking the president of the federal reserve so as not to reduce interest rates.
Images Andrew Harnik / Getty North America
hide
tilting legend
Images Andrew Harnik / Getty North America
President Trump said on Tuesday that he had “no intention” to dismiss the president of the federal reserve Jerome Powell, ending days of speculation on the independence of the Central Bank which had turned the financial markets.
“I have no intention of dismissing him,” said Trump from the Oval office, although he has maintained, “this is the ideal time to reduce interest rates.”
Since last week, Trump has used his social media platform to criticize Powell for, in his opinion, not to reduce interest rates fairly quickly – and at some point, the “Powell termination cannot come quickly enough”.
The attacks had disrupted the markets at a time when investors were already in advance on the economic impact of Trump’s radical rates.
The Fed was cautious about the drop in rates, partly due to the impact of prices, which would make goods imported more expensive.
However, Trump has supervised prices against American trade partners as a victory for the country – and good for American workers and the national manufacturing sector.
“We take a lot of money from the prices,” said Trump on Tuesday in his remarks.
A difficult relationship
President Trump and Powell had a difficult relationship even if Trump appointed the president of the current Fed for this position during his first mandate in the White House.
Trump frequently criticized the central bank so as not to maintain interest rates and also expressed the wish to have his say on monetary policy.
However, the Fed is designed to operate independently of this type of political pressure so that it can make the unpopular decisions necessary to combat inflation.
Powell tried to avoid antagonizing the president, but it was also categorical that he intended to serve the rest of his mandate, which takes place in May of next year.
Powell insists that the president does not have the power to dismiss him, with the exception of “cause”, which means a kind of bad behavior. The previous Supreme Court preceding supports this point of view.
But the White House reported a desire to test these standard members and licensed other independent agencies, which raises concerns that Trump would try to dismiss Powell.
