Firing Jerome Powell will crash financial markets — Sen. Elizabeth Warren
US Senator Elizabeth Warren warned that if President Donald Trump eventually moves to fire Federal Reserve Chair Jerome Powell, it could undermine investor confidence in the integrity of US capital markets and trigger a...
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US Senator Elizabeth Warren warned that if President Donald Trump eventually moves to fire Federal Reserve Chair Jerome Powell, it could undermine investor confidence in the integrity of US capital markets and trigger a financial crash.
During an appearance on CNBC, the Massachusetts Senator said the President does not have the legal authority to remove Powell from his position. Moreover, removing Powell would weaken the financial infrastructure of the US, Warren added:
"If Chairman Powell can be fired by the President of the United States, it will crash the markets. The infrastructure that keeps this stock market strong and, therefore, a big part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics.""If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn't distinguish us from any other two-bit dictatorship," Warren continued.
Trump discusses US economic policies with reporters. Source: The White HousePresident Trump has repeatedly called for Powell's termination, citing the chairman's hesitancy to lower interest rates. Lower interest rates are usually considered a positive catalyst for risk-on asset prices, including cryptocurrencies, and could reverse the market downturn brought on by the trade war and current macroeconomic pressures.
Related: Fed's Powell reasserts support for stablecoin legislation
Trump's feud with the Federal Reserve chairmanTrump criticized Powell for not cutting interest rates and called for his termination again in an April 17 Truth Social post, which inflamed speculation that he would follow through on threats and find a way to remove the chairman.
Senator Rick Scott echoed Trump's calls to remove Powell. "It’s time to clean house of everyone working at the Federal Reserve who isn’t on board with helping the American people and fighting for their best interests," Scott wrote in an opinion piece published on Fox News.
Source: Donald TrumpThe Trump administration has repeatedly stated that lowering interest rates is a top priority. Market analyst and investor Anthony Pompliano recently speculated that Trump deliberately crashed financial markets to force lower interest rates.
At the time, Pompliano cited a reduction in the yield of the 10-year US Treasury Bond to just 4%. The 10-year bond yield has climbed back up to 4.3% since then.
Magazine: Meebits and CryptoPunks are like Hot Wheels for adults: New MeebCo owner Sergito
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