Dismissal or not? US President Donald Trump blew hot and cold on the future of the President of the US Federal Reserve (Fed), Jerome Powell, assuring that he was thinking about the possibility of dismissing him before considering this idea as “very improbable”.
During a press briefing at the White House in the presence of the Crown Prince of Bahrain, Salmane Hamad Ben Issa Al-Khalifa, Mr. Trump judged that Mr. Powell was doing bad job
but don’t not speak
to dismiss him, after having assured a little earlier in the morning he was thinking about it, then stressing that he do not deviate anything, but
that it is very improbable
.
It is a form of retropedage on the part of the American president, who had assured journalists earlier that he considered that the cost of renovating the Fed buildings in Washington, could be a reason to justify a dismissal
.
The work has already cost $ 2.5 billion, according to the Board of the White House Management and Budget, Donald Trump seeing it in improper use of federal funds.
I would not have imagined that he was going to spend $ 2.5 billion to build a small extension to the Fed
the American president had told the press from the White House earlier during the day. Is this a reason to justify a dismissal? I think it can be.
He spent much more money than he was supposed to do so. Who wants to see the Fed spend so much money? It is supposed to come together, to say what interest rates do and a few other things very easy to do
he added.
According to the White House, the American president met on Tuesday evening republican elected officials to discuss with them the subject, a source specifying to theAFP That the president was thinking about the possibility of doing so, even if it was not imminent.
Too late Powell
Mr. Trump has been criticizing Mr. Powell for several months, whom he nicknamed Too late Powell
not to have dropped interest rates from the central bank when, according to him, inflation is no longer a problem.
I think this is one of the easiest jobs in the government. You come once a month, you make a statement about the state of the economy and if you are increasing or lower the rates. It’s probably the simplest job I have ever seen
said the American president.
The building of the American federal reserve in Washington.
Photo : Associated Press / Patrick Semansky
The day before, he called on the Fed to lower its key rates, currently located in a range between 4.25 % and 4.50 %, three percentage points.
According to the CPI index published on Tuesday, inflation accelerated again in June, at 2.7 %, still far from the target of 2 % price increase, planned in the mandate in the American central bank.
The Fed has maintained its unchanged rates since the start of the year in the face of the persistence of inflation.
Asked about the subject during an interview on CNBC, the director general of Goldman Sachs, David Solomon, said he It would be very bad for the president to dismiss that of the Fed
adding that he had no immediate elements on the subject.
Market decline
The financial markets have misunderstood this information. The dollar fell briefly by 1 % against the euro before going up.
On the bond market, the yield of the American loan at thirty years suddenly stretched 5.07 % against 5.02 % the day before, before falling slightly.
Gold, value refuge par excellence, gained ground (+0.74 %).
The star clues of Wall Street Also fell back in stride, before recovering a little after Mr. Trump’s flip-flop.
