The president of the Federal Reserve, Jerome Powellreceived a key support in the Capitol by Republican senators. It was before the fear of the possible repercussions if the president Donald Trump He fulfills his threat of dismissing him from the entity. In that line, the Republican was warned that his decision can damage the economy.
If he does, the president could destroy the independence of the Fed of political influence and would introduce uncertainty in the foundations of the US economy. “If someone thinks that it would be a good idea that the Fed becomes another government agency subject to the president, makes a big mistake,” said North Carolina Republican senator, Thom Tillisin a speech before the plenary.
The support measure of the republican members of the Banking, Housing and Urban Affairs of the Senate He showed how traditional Republicans carefully act in a presidency in which Trump often flirts with ideas, such as elevated tariffs or fire the president of the Fed, who threaten with undermine confidence in the US economy.
Republicans warned Donald Trump about saying goodbye to the president of the Fed
Tillis told AP that Economic consequences of Powell’s dismiss and that can have a few thousand dollars in your retirement plan. ”
He also noted that Trump’s underlying complaint against the Fed, that is, his reluctance to lower interest rates, does not depend only on Powell, but on a 12 -member committee. “Markets expect an independent central bank”Said Republican Senator for South Dakota Mike Rounds.
The president of the House of Representatives, Mike JohnsonHe told the journalists that he was “discontent with leadership” in the Fed, but added: “honestly, I am not sure if that executive authority exists” to fire Powell.
When the Congress created the Federal Reserve more than 100 years ago, it isolated it from the political pressure by stipulating that its governors and its president could only be fired “for cause”, a higher standard than most political appointments.
However, the Trump government has maneuvered to comply with that standard accusing Powell of evil managing a renewal project of US $ 2500 million at the Fed headquarters.
The economic perspectives “improved slightly”, according to the beige book of the Fed
Economic perspectives “They improved slightly”although the persistent uncertainty and the increase in cost pressures, driven by duty of President Donald Trump and the repression of immigration, according to the Beige Book of the Federal Reserve published on Wednesday.
Thus, it was specified that “Economic activity increased slightly from the end of May to the beginning of July”based on anecdotal information compiled by its 12 reserve banks until July 8 and argue that Uncertainty remained “high, contributing to the continuous caution of companies”.
Source: Ambito
