ZCZC
BCN-09
US-RATE-BANK-GROWTH
Trump asked officials if he can legally fire Fed chair: reports
WASHINGTON, Dec 23, 2018 (BSS/AFP) – President Donald Trump has privately
asked cabinet members if he has the authority to fire Fed Chair Jerome Powell
after interest rates were increased and the stock market tanked, US media
reported Saturday.
CNN and Bloomberg, citing unnamed people familiar with the matter, said
that Trump was furious when the Fed raised the key borrowing rate on
Wednesday and signaled it will continue to hike rates next year.
The Dow Jones Industrial Average closed the week with yet another steep
decline, its worst week in 10 years.
Powell, chosen by Trump for the job, took over the key post for a four-
year term at the helm of the US central bank in February, replacing Janet
Yellen.
Trump’s aggressive trade policies combined with the strong US dollar have
created fears of slowing US and global growth, and caused stock markets to
retreat.
On Tuesday, Trump warned the Fed not to make “yet another mistake” by
raising interest rates, the second consecutive day he has gone after the
central bank on Twitter.
Trump has ignored the US president’s traditional respect for the Fed’s
independence.
He has called the Fed “crazy,” “out of control” and a greater economic
threat than China.
An attempt to end Powell’s term early however would be a direct attack on
the independence of the powerful institution, which plays a major role in the
world’s largest economy, and likely create havoc in the stock market.
In October, Trump said he had no intention of firing Powell, but in
November he declared that he was “not even a little bit happy” with Powell.
It was unclear if Trump has the authority to fire Powell, according to US
media.
A Fed spokesperson was not immediately available for comment when
contacted by AFP.
BSS/AFP/HR/0930