Trump to fire Powell?
|Reports that Trump is about to fire the chairman of the Federal Reserve unnerved markets, hitting the dollar and stocks says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Reports suggest Trump poised to fire Powell
Late afternoon reports suggest that the White House was likely to sack Jerome Powell soon. The news has put the dollar firmly on the back foot, but has dragged stocks lower too. The Fed chairman’s departure would leave the independence of the central bank in question. It seems likely that his recent successes in passing his tax and spending bill, and the ceasefire in the Middle East, have emboldened the president to act.
Now we will see if the bond market vigilantes will put the US in their sights again. Such a dramatic move also suggests there is no backing down from tariffs this time around, especially with stocks at record highs.
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