Posted on 04/21/2025 4:09:57 PM PDT by karpov
If the White House wanted a test of how firing Jerome Powell would go over in the markets, it succeeded on Monday. U.S. stocks and the dollar plunged while yields on long-term Treasurys climbed after President Trump renewed his attacks on the Federal Reserve Chairman.
Monday was the first full trading day for markets to absorb National Economic Council director Kevin Hassett’s comments Friday that the White House is studying if Mr. Powell can legally be fired. On Monday Mr. Trump demanded again that Mr. Powell make “pre-emptive” interest rate cuts to avoid a slowdown. Cue the meltdown in stocks, bonds and the dollar, a trifecta of declining confidence.
Mr. Trump is furious that Mr. Powell has said publicly that tariffs will likely lead to higher inflation and slower growth. Mr. Trump conceded the growth point on Monday, lambasting Mr. Powell: “There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
Markets fear Mr. Trump really might fire Mr. Powell, not that it would do the President any good. He’d have to remove more than the Chairman to change the Federal Open Market Committee, which sets interest rates and tries to satisfy the central bank’s dual mandate of maximum employment and stable prices.
Mr. Trump can’t fire the regional Fed bank presidents on the committee, and all 12 voting members of the FOMC seem to agree with the Fed’s recent policy moves. A Powell replacement would also have a harder time establishing credibility with markets.
The same goes if Mr. Trump were to name a “shadow” Fed Chairman who would be expected to comment on the central bank’s every move between now and May 2026 when Mr. Powell’s term expires. This is a recipe for more market uncertainty.
(Excerpt) Read more at wsj.com ...
WSJ is no different than the NYT.
We shouldn’t have a fed anyways
Did WSJ poll every buyer and seller to come to their conclusion that its Trump’s fault?
Last summer/fall Powell was crazed to cut rates. While inflation was still increasing.
But now not so much.
The World Street Jounal (WSJ)
As JM Keynes once said, “the market can remain irrational longer than you can remain solvent.”
This is some president you guys have here. Have to hand it to you, you really know how to pick ‘em.
IBTZ.
That doesn’t make any sense.
I should say, much sense.
The babbler seems to be immune to zotting on this site.
Never Trumper stooge Karpov shows up right on schedule!
Oh please WSJ!!!
Criticism of the Fed is as old as the Fed itself.
I used the down market today to buy.
Isn’t that queer?
Ridiculous: 38,170.41 inflated “market”
And almost all the search engines leave the above out as a highlight.
Joe Biden got a Trillion dollar bogus “:Inflation Reduction Act” infusion of cash, plus 3 interest rate cuts.
Guess Powell thought that would reduce inflation…
Seriously Mr Too Late is looking pretty partisan right now, and Trump should lay off him and stop making him a martyr instead of a biased tool
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