One UK bond manager said: “If the supreme court upholds the decision then the fear is Trump will be able to fire Powell. If that happens then the bond market will really start to worry and it could close down the bond market again. It adds to the uncertainty.”
Mr Trump has been left raging as the Fed chairman resists pressure to cut interest rates to lessen the impact of the president’s escalating trade wars on American consumers.
Posting on his Truth Social network this week, Mr Trump fumed that the Fed chairman was “always TOO LATE AND WRONG”.
He later told reporters in the White House: “He’ll leave if I ask him to, he’ll be out of there. I’m not happy with him. I let him know and if I want him out, he’ll be out of there real fast, believe me.”
Spud insists that interest rates should be a political decision, that the Bank of England should not have operational independence. Will this hold or will we be treated to a dicourse on Trump’s fascism?
Is Powell any worse or any better than Bailey or Carney? Is his job actually doable at all? Is this a sensible way to manage the funny-money in which the world trades?
More and more it seems to me that many objections to Trump boil down to little more than that he says and does in public what other Presidents would have said and done in private. I suppose you might argue that the Trump way is more “democratic”. It’s certainly vastly more entertaining.
Ironically, all the goodthinkful journalists in the Antipodes just know that their interest rates are too high, and how could the reserve bank NOT lower them?
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