Trump will probably dismiss Fed-Baas Powell soon, begins

Donald Trump is seriously considering dismissing Jerome Powell, chairman of the US Central Bank (Federal Reserve). That reported business channel CNBC after a private meeting in the White House with Republican Congressmen. According to several attendees, Trump would have said that he “will do it”.

Support for Republicans

During the meeting on Tuesday evening, Trump explicitly asked the congress members present whether they would support Powell. When they say their support, Trump announced that he is planning to fire Powell soon. The messages directly caused unrest in the financial markets: the S&P 500 dropped and the interest on American government bonds increased.

Frustrated about interest for months

Trump from for a long time hard criticism of Powell’s policy. The Federal Reserve has so far refused to lower policy interest, as long as there is uncertainty about inflation. According to FED officials, the risk remains that previous measures from Trump-such as import rates on foreign products-will again cause price pressure.

That course collides with Trumps political and economic interests. He wants a smooth monetary policy and higher stock prices before the November 2024 elections. However, Powell, who was appointed by Trump himself in 2017, holds on to that.

Legally difficult, but political printing agent

Although Trump has called several times to resign Powell, a president cannot legally dismiss the FED chairman for policy differences. The current term of Powell will officially run until May 2026. Yet political pressure from the congress and the White House can undermine the position of the FED boss.

The tension also recently escalated, after the White House complained about a cost of cost in the renovation of the FED headquarters in Washington. The project is expected to cost 2.5 billion dollars. Powell then asked for an independent investigation by the internal supervisor.

It is still unclear whether this issue will be used as an official motive for dismissal. But Trump’s message is clear: if it is up to him, a different name will soon come on the door of the Fed.