The case regarding the possible dismissal of the head of the Federal Reserve (Fed) Jerome Powell will continue to be analyzed by Donald Trump and his team – said Kevin Hassett on Friday, US President's adviser to economic matters. Experts point out that Trump is not authorized to dismiss the president of the American Central Bank, but he clearly made it clear that he may want to break with the current rules.
– The president and his team will analyze this matter – Hassett told journalists, asked about the possibility of releasing the head of the Fed.
On Thursday, Trump said that if he wanted to, the president of the Federal Reserve Powell “very quickly” would leave the position. Once again he criticized the head of the central bank, claiming that he was “guilty of Americans lowering interest rates.” The president assured that he has the right to release Powell.
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Trump may want to change the rules
As CNN noted on Friday, according to many experts, Trump is not authorized to dismiss the President of the Fed, but the president clearly hinted that he may want to break with the existing rules, even if it would be potentially associated with huge consequences.
According to CNN, the main candidate for the head of the Central Bank in exchange for Powell – whether after his term of office in 2026 or earlier – is Kevin Warsh. Trump previously considered his candidacy for the Minister of Finance in his second term.
Bessent told Bloomberg that talks with candidates for Powell's successor would start in autumn.
According to some observers, Scott Bessent became the Minister of Finance, for Warsh to stay up as well as the future candidate for the President of the Fed.
Jerome PowellShawn Thew/PAP
“Exemplary president of the bank”
The head of the French Central Bank Francois Villeroy de Galhau, quoted on Friday by the Reuters agency, said that Powell is an exemplary president of the bank who tells the truth about the state American economy And he doesn't give in to political pressure.
On Thursday, Trump on Truth Social once again criticized Powell, claiming that he did not do his work well. He assessed that he was always late with lowering interest rates. He stated that the head of the Fed was putting USA In a worse position towards Europe, because the European Central Bank consistently reduces its feet, while Powell has been refraining from December.
Trump's criticism was a response to the Wednesday speech by the President of the FED in Chicago, in which he assessed that the duties imposed by Trump could contribute to an increase inflation – Perhaps also for longer – and reduction of economic growth. He also suggested that in connection with the uncertainty of commercial policy, the Federal Reserve would refrain from further foot cuts.
Source of the main photo: PAP/EPA/YURI GIPAS/POOL