Prison » Trump Reportedly Considering Firing Fed Chair Powell; Mnuchin Denies

Zero Hedge
December 23, 2018

Update: shortly after 6pm, Steven Mnuchin posted a pair of tweets in which he denied that Trump had ever suggested firing Powell, which of course is to be expected: after all it was Mnuchin who picked Powell and it was Mnuchin who was blamed on several occasions by the president for picking the former lawyer as Fed chair:

If amid the barrage of negative news hitting the market this quarter there has been one outstanding item which would have sent it sharply (even) lower, that would be a flashing red headline – or a tweet from the president – announcing that Trump has fired Fed Chair Jerome Powell.

And while to many such an act would seem unthinkable, even from someone as unorthodox and unpredictable as Trump, it now appears that’s precisely the outcome the market will have to worry about next as Bloomberg reports that the president has discussed firing Federal Reserve Chairman Jerome Powell “as his frustration with the central bank chief intensified following this week’s interest-rate increase and months of stock-market losses”, citing four people familiar with the matter.

While advisors in Trump’s inner circle have rightfully warned him that firing Powell would be a “disastrous move” for stock prices, and instead are “hoping that the president’s latest bout of anger will dissipate over the holidays”, the sources…

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