From CNN:
More worrisome, perhaps, is how the Trump administration perceives the market’s reaction [to presidential talk about Powell firing].
“We have to wonder if the earlier report was a trial balloon designed to see how markets might react if Powell were indeed fired,” Sosnick said. “Quite frankly, the relatively muted reactions from stocks and the 10-year bond might have increased the president’s willingness to take action, since the initial reaction was hardly catastrophic.”
The markets are betting on TACO striking again – he won’t go through with it, so why panic. Of course, if he DOES fire Powell, the response will be swift and awful.
Todays WSJ lead editorial:
Firing Powell Would Be a Blunder
It’s often hard to know when President Trump is serious about something, or merely creating a distraction. But in case he really meant it this week when he told Republican lawmakers he may fire Federal Reserve Chair Jerome Powell, we have some advice: Don’t do it.
Mr. Trump reportedly told some Republicans he’s written a letter firing Mr. Powell and may send it. Markets reacted badly, and within minutes the President said he has no plans to dismiss the Fed chief. Some advisers are telling Mr. Trump to keep Mr. Powell until his term as chairman expires next May, but others are gunning for the Fed leader. Mr. Trump might not know himself what he’ll do.
Mr. Trump’s grievances with Mr. Powell are easy to understand, if not always to agree with. The President expected Mr. Powell to be more deferential when he appointed the chairman in his first term. Instead, Mr. Powell continued the Fed’s policy at the time of gradually increasing interest rates and shrinking the central bank’s balance sheet. Mr. Trump apparently didn’t notice the economy boomed amid moderate inflation as Mr. Powell’s monetary normalization coincided with the first-term tax reform.
I expect him to fire Powell because he said he would not fire him.
Agreed. Couldn’t we just prevent this by letting TFG know he’s the one who appointed Powell? He doesn’t seem to know this…
The “Ministry of Truth” at work, again.
Steve
There’s always the legality of doing that to, although T does not especially follow the law. What if Powell is “fired” and he just refuses to acknowledge it? Would T get his DOJ or ICE people to cart him out?
Pete
Taco is an invention. Markets aren’t rational
Tfg thinks he’s negotiating. Some folks believe that will fix things
Have you noticed any other blunders?