US Treasury Secretary: Trump Will Not Dismiss Fed Boss Powell

US Treasury Secretary: Trump Will not Dismiss Fed Boss Powell. Jerome Powell, the chairman of the Federal Reserve, is not fired according to the US Treasury Secretary.

 

That’s what Steven Mnuchin stated after rumours that President Donald Trump would consider sending the boss of the central bank.

Mnuchin stated on Twitter that he spoke to Trump about those messages.

In doing so, Trump would have told his minister that he, as president, does not even have the right to remove the Federal Reserve boss from his post directly.

White House spokesperson Sarah Sanders also spoke against the rumours.

“I’m not aware of any plans to dismiss Powell,” she said.

If Trump put Powell aside, that would have far-reaching outcomes on the financial markets.

Investors will then have little confidence in the ability of the Federal Reserve to control the economy without political interference.

Trump critical of interest policy Federal Reserve
The President has recently repeatedly criticised the interest rate policy of the umbrella of central banks.

Trump is against interest rate increases because they make borrowing more expensive, and that puts a brake on economic growth.

The president also wants no extra pressure on the boiler in connection with the commercial problems with China.

Powell and the other policymakers at the Federal Reserve nevertheless raised interest rates last week.

Also reported that the advisers of the president have said that they do not assume,

 that Trump will take actions against the Federal Reserve foreman and that his anger will increase during the holidays.

Some of them have also warned the President that Powell’s dismissal would be disastrous.