Fed’s Powell says credibility lost if President can fire officials
Former Federal Reserve (Fed) Chair Jerome Powell said the US central bank would damage public trust that’s required to support a strong and stable economy if any president were free to dismiss Fed officials over policy disagreements, Bloomberg reported on Monday.
Powell’s remarks came as the US highest court is deliberating the fate of Fed Governor Lisa Cook, whom US President Donald Trump has sought to fire over unproven mortgage fraud allegations. Cook has denied the charge.
Key quotes
If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well.
The Fed’s credibility would be lost.
Our credibility has been built and sustained over many decades, and we have a duty to safeguard that priceless asset for our fellow citizens and for generations to come.
Market reaction
At the time of writing, the US Dollar Index (DXY) is up 0.13% on the day at 99.05.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Treasury yields soar to a 24-year high; US Treasury advisors expect future declines as AI investments and energy shocks drive up borrowing costs
David Zervos, senior advisor to U.S. Treasury Secretary Yellen and a veteran Wall Street professional, stated on Thursday that despite the recent surge in U.S. Treasury yields to their highest levels in decades, the current real yields are significantly elevated compared to historical levels, suggesting room for a decline in the future.
St. Louis Fed President: Further rate hikes needed over the next 6 to 9 months; inflation remains the top issue for the US economy
St. Louis Federal Reserve President Musalem said on Thursday that the Federal Reserve still needs to raise interest rates further in order to bring U.S. inflation back to the 2% target in a timely manner.
Trump's tariffs increase U.S. consumer costs: New York Fed reports prices of related goods up nearly 3%, impact may last until 2027
The latest research by the Federal Reserve Bank of New York shows that the tariff policies implemented by U.S. President Trump have significantly increased the cost for American consumers to purchase everyday goods.
Overnight US Stocks | AI Performance Concerns Resurface, Nasdaq Falls Over 1%, Micron Technology (MU.US) Drops Over 4%
At the close, the Dow Jones Index rose by 52.61 points, or 0.10%, to 51,232.48 points; the S&P 500 Index fell by 36.35 points, or 0.47%, to 7,765.42 points; and the Nasdaq Composite Index dropped by 345.35 points, or 1.25%, to 27,193.34 points.
Crypto prices
More
