Will Trump respect the Fed’s independence?
1 week, 2 days ago

Will Trump respect the Fed’s independence?

Live Mint  

When I joined the Federal Reserve Board as vice chairman in 1994, the central bank was already the center of the universe for financial-market specialists. During Mr. Trump’s first term, he frequently lambasted the Federal Open Market Committee, and Chairman Jerome Powell personally, for not cutting rates fast enough. Replacing him with someone more to Mr. Trump’s liking is also entirely within the president’s authority, so long as the Senate confirms the nominee. During his first term, the White House broached the idea of demoting Mr. Powell to an ordinary member of the Federal Reserve Board. This step, too, is probably illegal, so the incoming administration is considering another scenario: Mr. Trump could designate, or even nominate, Mr. Powell’s successor well before his term ends, thereby creating, in Mr. Bessent’s words, a “shadow" Fed chairman.

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History of this topic

The Federal Reserve takes on Trump—and stubborn inflation
3 weeks, 2 days ago

The Federal Reserve takes on Trump—and stubborn inflation

Live Mint  

A lot is riding on the numbers after the decimal point. In such a scenario, Mr Trump would presumably be satisfied enough with the central bank that he would feel little compulsion to snipe at Jerome Powell, the Fed’s chairman, or, worse, to start a legal battle by trying to oust Mr Powell before his term expires in May 2026. …

Donald Trump says he has no plans to replace Jerome Powell as Fed Chair
1 month ago

Donald Trump says he has no plans to replace Jerome Powell as Fed Chair

Hindustan Times  

President-elect Donald Trump said he has no plans to replace Fed Chair Jerome Powell once he returns to the White House, saying “I don’t see it.” Trump has previously said he should have a say in monetary policy and the setting of interest rates. “I think if I told him to, he would,” Trump said on NBC’s Meet the Press, …

Republicans (Quietly) Disagree With Trump on the Fed
1 month ago

Republicans (Quietly) Disagree With Trump on the Fed

Politico  

The president-elect’s chief issue with the Fed seems to be that he wants more influence over its decisions. Powell’s term also ends in May 2026, at which time Trump will be able to pick a new Fed chief, who could shift the modern, arms-length relationship between presidents and central bank leaders. “I like the way it’s set up right now,” …

Trump should challenge the Fed’s policies
1 month, 1 week ago

Trump should challenge the Fed’s policies

Live Mint  

Now that Donald Trump is the president-elect, expect warnings about the dangers of compromising the independence of the Federal Reserve. But unless these goals align with the Fed’s model for achieving its dual mandate—maximum employment and stable prices—the central bank could undercut Mr. Trump’s agenda. This followed the jumbo 50 basis-point cut announced in September, a decision that Mr. Powell …

Trump probably won’t try to fire Jerome Powell
1 month, 2 weeks ago

Trump probably won’t try to fire Jerome Powell

Live Mint  

President Trump’s election has reignited the debate over whether he might attempt to fire Federal Reserve Chairman Jerome Powell. Yet firing Mr. Powell is unlikely to be on the president-elect’s immediate priority list unless inflation suddenly spikes and forces the Fed to reverse course. Why would Mr. Trump rush to fire someone who’s in the midst of lowering interest rates, …

Long shot or not, Trump must make peace with Fed Chair Powell
1 month, 3 weeks ago

Long shot or not, Trump must make peace with Fed Chair Powell

Live Mint  

US bond markets have had a minor meltdown since former President Donald Trump pulled ahead in prediction markets and then won a second term last week, putting upward pressure on mortgages and other household borrowing costs. Fortunately, there’s a clear way for him to mitigate that damage and start his term on the right foot with bond markets: He should …

If Trump tries to fire Powell, Fed Chair is ready for a legal fight
1 month, 4 weeks ago

If Trump tries to fire Powell, Fed Chair is ready for a legal fight

Live Mint  

When a frustrated Donald Trump flirted with removing Federal Reserve Chair Jerome Powell in a dispute over interest rates back in 2018, Fed leaders privately readied a break-glass-in-case-of-emergency response: a legal challenge against the president to protect the integrity of America’s central bank. Second, trying to remove the Fed chair now, when the central bank hasn’t finished waging its battle …

Donald Trump has a surprising update on the future of Fed boss Jerome Powell
Trending News
2 months ago

Donald Trump has a surprising update on the future of Fed boss Jerome Powell

Daily Mail  

Donald Trump is expected to let Federal Reserve chairman Jerome Powell to stay in his job, Trump has often voiced his frustrations with Jerome Powell and even threatened to remove him from his role as fed chair - an unprecedented move for any president. Anything that causes inflation to jump again could lead Fed policymakers to slow or even halt …

What’s at stake with the Fed, now that Trump has won?
2 months ago

What’s at stake with the Fed, now that Trump has won?

Live Mint  

When Federal Reserve officials decide this week on the path for interest rates, they will have a new factor to consider: the re-election of Donald Trump. Not only could Trump’s policies affect the path for inflation and growth, his return to the White House also poses questions about the Fed’s freedom to set rates without political interference. Trump appointed the …

Trump threatened to fire 'this idiot' Fed chairman unless he did his bidding: book
4 months, 2 weeks ago

Trump threatened to fire 'this idiot' Fed chairman unless he did his bidding: book

Raw Story  

A new book written by former Commerce Secretary Wilbur Ross claims that former President Donald Trump was hellbent on axing Federal Reserve Chairman Jerome Powell unless he cut interest rates. As Forbes reports, Ross writes that Trump summoned him to a meeting where he demanded that Ross set Powell straight about his policy of raising interest rates, which Trump believed …

Jerome Powell could face more opposition as Fed choices get tougher
1 year, 8 months ago

Jerome Powell could face more opposition as Fed choices get tougher

Live Mint  

Chair Jerome Powell has achieved a near-perfect consensus as the Federal Reserve raised interest rates aggressively. “We are getting close to the hardest mile for the Fed in this marathon — the part where backlash to rate hikes will intensify, in ways no one on the Fed has had to weather.” Fed officials have signaled that the FOMC will hike …

President Donald Trump has already changed the Fed forever
5 years, 6 months ago

President Donald Trump has already changed the Fed forever

CNN  

CNN Business — The Federal Reserve is known for being slow and deliberate, but over the last six months, it’s moved at lightning speed, going from forecasting a steady increase in interest rates to openly indicating possibly one, maybe two, cuts by the end of this year. He’s called him “loco” in interviews, asked if he could be fired and …

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