Chairman of the Federal Reserve of the United States (Fed), Jerome Powell, may be fired by President Donald Trump in the near future.
This information was disclosed by White House officials, although the specific timeline for the final decision on changing Fed leadership has not been clearly defined.
MAIN CONTENT
The President of the United States is considering firing Fed Chairman Jerome Powell.
There is no specific time frame for this decision.
The information has been confirmed by senior officials at the White House.
Why might President Trump fire Fed Chairman Powell?
Financial and economic experts believe that Trump may be dissatisfied with the Fed's monetary policy under Powell, impacting the U.S. economy and market expectations.
The White House desires a more flexible policy to promote growth and price stability in the face of economic pressures. The political relationship between the president and the Fed Chairman is rarely easy when policy interests do not align.
How will the information about the firing decision be announced?
According to sources from White House officials revealed on July 16, the firing of Powell is only in the consideration stage.
There is currently no official schedule for this decision, reflecting the sensitivity and importance of the position of the head of the Fed in stabilizing national monetary policy.
"Re-evaluating the Fed leadership is part of the effort to ensure the alignment of monetary policy with national economic direction."
Economist Paul Krugman, 2020
Potential impact if the Fed Chairman is fired
From the experience of multiple changes in Fed leadership, this event could cause volatility in financial markets and increase uncertainty about U.S. monetary policy.
Global investors often closely monitor this information because the Fed is the key institution for setting interest rates, controlling inflation, and supporting economic recovery.
Comparison of past changes in Fed Chairmanship in history
Fed Chairman Term of Office Reason for Change Policy Impact Alan Greenspan 1987–2006 End of term, voluntary retirement Stability policy, long-term growth support Ben Bernanke 2006–2014 End of term, moved to academia Response to the 2008 financial crisis, quantitative easing Jerome Powell 2018 to present Uncertain possibility of being fired Flexible monetary policy direction during the Covid-19 pandemic
Frequently Asked Questions
Does the President of the United States have the authority to fire the Fed Chairman?
This authority belongs to the president and is confirmed by Congress upon appointment; firings usually occur very cautiously.
When did Jerome Powell assume the role of Fed Chairman?
Mr. Powell began his term as Fed Chairman at the beginning of 2018.
Does changing the Fed Chairman affect the money market?
Changes in Fed leadership often cause certain volatility due to their impact on interest rate policy and the global economy.
When will the firing decision be announced?
There is currently no official information regarding the timing of the decision related to Powell.
How does the current monetary policy of the Fed affect the U.S. economy?
The Fed is balancing between controlling inflation and supporting economic growth amid global volatility.
Source: https://tintucbitcoin.com/trump-co-the-sa-thai-chu-tich-fed/
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