Connect with us

Popular World News

Former Fed Chiefs Unite in Call on Trump to End Powell Threats By Bloomberg

Former Fed Chiefs Unite in Call on Trump to End Powell Threats By Bloomberg

ECONOMIC NEWS

Former Fed Chiefs Unite in Call on Trump to End Powell Threats By Bloomberg



(Bloomberg) — Four former Federal Reserve chiefs made a joint plea for the central bank to be able to operate without political pressures or the threat of removal of its leaders, responding to President Donald Trump’s persistent attacks on current Chairman Jerome Powell.

“We are united in the conviction that the Fed and its chair must be permitted to act independently and in the best interests of the economy, free of short-term political pressures and, in particular, without the threat of removal or demotion of Fed leaders for political reasons,” Janet Yellen, Ben Bernanke, Alan Greenspan and Paul Volcker said in an op-ed in the Wall Street Journal.

In the latest move to pile pressure on the Fed, the president said that a decline in the yuan on Monday — which fell below the psychologically important level of seven per dollar — is called “currency manipulation” and indicated he’d like the Fed to act to counter the Chinese action. His Treasury Department later in the day said it had formally labeled China a currency manipulator.

All the Trump Quotes on Powell as Fed Remains in the Firing Line

Trump has up-ended almost three decades of White House practice of avoiding public remarks on the Fed out of respect for its independence.

Last week, Trump called for a “large” cut in the benchmark rate as the Federal Reserve held a two-day meeting. He later took to Twitter to slam the Fed’s decision to cut by just 25 basis points. And while the Fed chief played down expectations of more cuts to follow, Trump said he should’ve done the opposite.

Powell has said repeatedly that he intends to serve his full four-year term as chair and that “the law is clear” on that issue. In response to a question from lawmakers during his testimony before Congress last month, Powell said he wouldn’t step down from his job if Trump attempted to fire him.

“It is critical to preserve the Federal Reserve’s ability to make decisions based on the best interests of the nation, not the interests of a small group of politicians,” the former Fed chairs said in the op-ed.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in ECONOMIC NEWS

To Top
error: Content is protected !!
Top