Trump values ​​firing the Fed chief after rate hike, according to CNN

Trump values ​​firing the Fed chief after rate hike, according to CNN

US President Donald Trump is assessing the possibility of dismissing Federal Reserve (Fed) President Jerome Powell after the agency raised interest rates this week, CNN reported today. to two sources familiar with the matter.

CNN says Trump is "furious" with the Fed and has asked his advisors for advice on the possibility of expelling Powell, specifically on whether, as president, he can legally depose the head of US monetary policy.

Powell was elected by Trump as president of the Fed and took office in February of this year with a four-year term.

This week, unanimously, the Fed decided to increase interest rates by a quarter of a point, so that the price of money in the US it was between 2.25% and 2.50%, with which they are at levels not seen in more than a decade in the world's leading economy.

The central bank took that step by ignoring Trump, who had asked the Fed not to make a "new mistake" with the rate hike.

The president has complained repeatedly that the gradual monetary adjustment advocated by the body led by Powell poses a threat to the acceleration of the US economy.

The president's criticisms of the central bank break the traditional respect for the independence of monetary policy from the White House, and have surprised markets and analysts.

For his part, Powell has avoided responding to the president and has insisted that the good economic situation in the country with an unemployment rate of 3.7%, at minimum levels of almost half a century, and inflation close to the annual target of two %.

In recent months, however, Wall Street has shown signs of weakness, and the Industrial Dow Jones, its main indicator, has fallen 12% since October.


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