PANews, July 12 - According to Jinshi, the White House is pressuring Powell regarding the renovation of the Federal Reserve headquarters. An article by "Federal Reserve Mouthpiece" Nick Timiraos points out that Federal Reserve researchers say the latest developments, in a good light, are a transparent attempt aimed at opening a new front of pressure on the Federal Reserve, and in a bad light, it is a dangerous step to create legal grounds for Powell's ousting.
We are at a crucial moment in the history of the Federal Reserve," said Peter Conti-Brown, a scholar at the University of Pennsylvania who studies the Federal Reserve. "In my view, it is clear that the Trump administration is now using various mechanisms to fabricate a post-hoc explanation for Powell's removal." Investors are paying attention to this because politically motivated firings of the Federal Reserve chairman would break a long-standing norm that has underpinned global confidence in the dollar for decades. "If President Trump and his allies launch such an attack on the Federal Reserve, they will bring serious instability to almost every aspect of the global economy," Conti-Brown said.
