Washington: Trump hesitates to dismiss the president of the Fed

US President Donald Trump blown up hot. Consequently, cold on the future of the President of the US Federal Reserve (Fed), on Wednesday, Jerome Powellensuring thinking about dismissing him before considering the possibility as “very improbable”.

During a press briefing at the White House. However, in washington: trump hesitates dismiss president the presence of the crown prince of Bahreïn Salman Ben Hamad ben Issa Al Khalifa, Trump judged that Jerome Powell was doing “bad job” but “does not speak” of dismissing him, after having assured a little earlier in the morning he thought about it, stressing that he “does nothing, but” that it was “very improbable”.

Renovation of Fed buildings – Washington: trump hesitates dismiss president

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 works have already cost $ 2.5 billion. according to the management and budget office (OMB) of the White House, Donald Trump seeing it in improper use of federal funds.

“I washington: trump hesitates dismiss president would not have imagined that he was going to spend 2.5 billion dollars 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.

Tensions Trump-Powell

According to the White House. the American president met on Tuesday evening Republican elected officials in order to discuss with them the subject, a source specifying to AFP that the president was thinking about doing so, even washington: trump hesitates dismiss president if it was not imminent.

Trump Reproach for several months to Powell. which he nicknamed “too late Powell”, for not having dropped interest rates from the central bank when, according to him, inflation is no longer a problem.

“I think it is one of the easiest jobs of 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. This is undoubtedly the simplest job I have ever seen, “said the American president.

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 Tuesday, inflation, however, accelerated again in June, washington: trump hesitates dismiss president at 2.7%, still far from the target of 2% price increase, provided for in the mandate of 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 that it would be very bad for the president to dismiss that of the Fed “, adding that he had no immediate elements on the subject.

Impact of Trump’s announcement

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 washington: trump hesitates dismiss president stretched 5.07% against 5.02% the day before, before falling slightly.

Gold, refuge value par excellence, gained ground (+0.74%). Wall Street’s stars indices also fell back in stride, before resuming somewhat after Trump’s flip-flop.

AFP

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