Tuesday , January 31 2023

Report: Talking to Trump Fed Chairman Fired on Rate Hikes



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(Bloomberg) – President Donald Trump, chairman of the Central Bank Jerome Powell, said this week that four of your acquaintances have opened fire this week as a source of frustration with the central bank president after the increase in interest rates and stock market losses.

The advisers near Trump did not believe that they would act against Powell, and the president's latest anger was hoping to get away from these strikes, and people were saying anonymously. Some of Trump's advisers warned him that Powell fire would be a disastrous move.

However, the president has personally chatted with Powell in the last few days.

Any attempt by Trump to prosecute Powlom would have a potential destructive fluctuation in financial markets and would undermine investors' belief that the central bank's ability to shepherd the economy without political interference. As the markets in recent weeks declined, major stock indexes dropped sharply throughout the year.

White House spokesman refused to comment as Fed spokesman Michel Smith.

Public and private complaints about members of the Trump administration were often the first step toward their departure – former Attorney General Jeff Sessions, his first Secretary of State Rex Tillerson and his departure headquarters John Kelly.

It's not clear how President Powell has so much legal authority to shoot. The Federal Reserve states that governors can "be raised on the grounds of the president." Peter's Conti-Brown notes the book in the book Fed Independence of Pennsylvania, as the president is also a governor, probably with him or her, but the rules for fired a leader are legally uncertain.

This step is an unprecedented challenge to the Fed's independence. Despite being nominated by the President, Powell was deprived of Trump's dissatisfaction with the tradition of respect for the Central Bank's independence.

Separation of politics from monetary policy should make sure that the Fed's authorities will do the right thing for the economy not for long-term politicians' short-term desires.

In recent days, Trump's frustration with Powell has become very intense, two men said. Although Trump's goal is to stop the slowing economic growth of the interest rate growth, such a move can now be overturned by contradictory financial markets.

Even daily changes in the upper part of central banks create uncertainty in the markets because investors are trying to estimate how difficult the new leader is in preventing the economy from fertilizing and accelerating inflation. Another problem with dismantling a Fed president who is sitting may be finding a replacement for confidence that Powell will not go against the same fate.

Casting is in the middle of something that plays a role in the management. Since mid-November, Sessions, Kelly, Interior Minister Ryan Zinke and Defense Secretary James Mattis have made their speeches. At the same time, the closure of the partial federal government has intensified in Washington among investors in the investor.

Stocks only mentioned the worst week since 2011, when S & P 500 fell to 7.1 percent and the Nasdaq Composite hit the market. Trump, at one point in October, revealed that the Fed had a lot of crime, saying "Loco goes" to raise the interest rates of the Central Bank.

Some of Trump's managers were directed to Treasury Secretary Steven Mnuke for agreeing to Powell to head the Finance Ministry.

Powell has recently been criticized for criticizing the public's complaints of interest rates at least one of the president and his advisers. Less than two weeks before the Fed's final decision, Trump said Powell was "very aggressive, very aggressive, really aggressive," saying to Reuters Central Bank that it would be "foolish" to continue to increase interest rates.

The Fed announced a widening expectation rate on Wednesday and pointed out that Powell would be more careful about next year's intensification. However, according to the investors' comments, concerns have caused the US Treasury's most terrible decrease since the announcement of any Federal Open Market Committee since 2011.

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