Such a transition to the act of Donald Trump – prudence is therefore essential at this stage – would also undermine the credibility of the future monetary policy of the most powerful central bank on the planet and which gives the tempo to the rest of the planet. The economic and scholarship issues of such a decision are therefore colossal. At the announcement of these new rumors, the dollar was also giving up this Wednesday at the end of the day again on the ground against the Euro. And the yield of American state loans at 30 years old, for its part, was clearly tense, crossing the symbolic threshold of 5%.
Customs rights criticized
It’s been months now that Trump openly criticizes Jerome Powell, the day “has been and fool” and stressing that he “does not understand anything about the economy”. The American president does not digest that the Fed is reluctant to lower interest rates, which would give a boost to the first economy of the planet. Its impatience has still mounted a notch in recent weeks while the European Central Bank (ECB) has clearly initiated a rate of drop in rates. Known for his independence, Jerome Powell, for his part, clearly indicated that the pricing policy led by Donald Trump with the implementation of customs duties hitting all the products entering the United States was a factor “instability” For the American economy.
This Wednesday, Trump once again blew hot and cold on the future of the president of the Fed, saying to think about dismissing him before considering the possibility as “Very improbable”.
Jerome Powell, boss of the American federal reserve, does not give in to Trump and do not touch the rates
According to the White House, Donald Trump would have met Republican elected officials on Tuesday evening to discuss with them the fate of Jerome Powell, a source specifying to AFP that the president was thinking about the opportunity to dismiss him, even if it is not imminent.
Too expensive buildings?
Trump would actually look for a pretext to clear the powerful boss of the Fed. Earlier in the day, he had mentioned with journalists the cost of renovating the Fed buildings in Washington as “A reason to justify a dismissal”. These works – which have already cost $ 2.5 billion, according to the management and budget office (OMB) of the White House – would symbolize in the eyes of the Trump a misuse of federal funds.
In the stock markets, the showdown between Donald Trump and Jerome Powell, at the end of the time that is difficult to predict, is beginning to make more than one investor tremble …
