The American president blew hot and cold on the future of Jerome Powell, finally declaring that he “does bad job” but saying that he is not talking about dismissing him.
Dismissal or not? US President Donald Trump blown up hot and cold on the future of the President of the US Federal Reserve (Fed), Jerome Powell on Wednesday, ensuring thinking that you are looking at the possibility 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, Donald Trump judged that Jerome Powell “Make bad job” but not “Do 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 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 works have already cost $ 2.5 billion, according to the Management and Budget Budget (OMB) of the White House, Donald Trump seeing it as poor 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 ”.
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“Too late 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 stating that the president was thinking about doing so, even if it is not imminent. Donald Trump has been criticizing Jerome 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. He thus called on Tuesday the Fed to lower its guiding rates, currently located in a range between 4.25% and 4.50%, of three percentage points.
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. 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, refuge value par excellence, gained ground (+0.74%). Wall Street’s stars indices also fell back in stride, before resuming a little after Donald Trump’s flip-flop.
