Imagine the reaction of the markets if Powell resigns at Trump’s demand. Then imagine the reaction if he refuses a demand to resign. There’s no discernible difference: the markets would be completely fucked (to use the technical terminology of economists).
I believe this is what you would call evidence of an independent body…
Federal Reserve Chair Says He Would Refuse A Resignation Request By Trump
Trump: Aaaaarrrrg… now I want Powell fired even more than I want my wall!!!
I don’t know much about macroeconomics. But I know what it means when a guy slowly gets off his barstool and stands there calmly looking at another guy who’s been mouthing off.
He just threw down the gauntlet. Next move is for the elderly enfant terrible to “fire” the Fed Chairman. I don’t believe he has that power absent “cause,” but he will try.
This is why the Fed should remain an independent branch of government, free from Congressional or White House interference.
Ever since the Fed announced the end of its QE policy a few years ago, I have wondered how it will handle unwinding the trillions in Treasuries and mortgage-backed investments.
Before she left, Fed Chair Janet Yellen said she wanted to do it slowly – allowing investments to mature and then not rolling them over, as opposed to a massive sell-off which could roil markets and diminish the Fed’s return on its investment. Powell seems to be following Yellen’s approach, and he should be allowed to continue without interference.
When will Dotard realize the Fed is not there to serve the PPresident, or “save” the stock market?
Never…
He might have a case, if he can define “talking mean about the President” as cause.
Powell is a conservative ass. But he’s better than any pre-2021 alternative.
That is the exact moment when MACRO become MICRO. Just before the clenched fist finds the red proboscis.
Asked if he would resign if Trump asked him to do so, Powell responded with a short “no.”
bookmarking
I don’t know who will do his bidding, but Trump doesn’t directly fire people. He supposedly hates doing it.
I’m gonna take a wild guess and say TWITTER.
or he’d have Pompeo do it.
The roll off is squeezing the liquidity enough that the overlevered are feeling no small amount of pain…
As always, when the goes out, you find out who has been swimming naked…
Well, yeah - he wants to fire the guy ’cause he was mean to Donnie! What more cause do you need!?!?
Well fuck you, Mr President. hahahaahahahahahahahahahahahahahahahahaha
Yes, a president can fire the chair of the Fed, for cause.
Trump’s minions’ understanding of “for cause” will be no match for the markets.
The same day he realizes that the Attorney General is not his private attorney and that the members of Congress aren’t his minions (all evidence to the contrary provided by spineless Republicans excepted).