U.S. President Donald Trump has drafted a letter proposing the dismissal of Federal Reserve Chair Jerome Powell.

MAIN CONTENT

  • Trump drafts a letter proposing the dismissal of Fed Chair Jerome Powell.

  • News published by the New York Times and quoted by Jinshi.

What has Trump done regarding Fed Chair Jerome Powell?

Donald Trump drafted an official letter proposing the dismissal of Fed Chair Jerome Powell. This is an unprecedented move for the head of the U.S. central bank.

According to a report by the New York Times on July 16, the U.S. President wants to change the Fed leadership to implement monetary policies more aligned with national economic interests. This event has attracted significant attention from the global financial analysis community.

The proposal to dismiss the Fed Chair reflects deep dissatisfaction with the current conduct of monetary policy, which could significantly impact the markets.

Mary Daly, President of the San Francisco Fed, 2023

Why is changing the Fed Chair important for the U.S. economy?

The Fed Chair plays a key role in adjusting interest rates and monetary policy, directly impacting inflation and economic growth.

Replacing Powell could change the policy direction, immediately impacting the money market, stock market, and investment decisions. Analysts note that the stability of the Fed is a foundational factor in maintaining investor and public trust.

The potential impact of the decision to dismiss the Fed Chair

Monetary policy could become more unpredictable, causing volatility in financial markets. Political risks also rise as government interference in the Central Bank could limit independence in decision-making.

Experts warn that this event could undermine the Fed's credibility internationally, while also increasing risk in U.S. economic governance.

Monetary policy needs to remain independent to ensure stability and accurate long-term forecasts.

Janet Yellen, former Fed Chair, 2024

How are the markets and investors reacting to this information?

News about the potential dismissal of the Fed Chair has caused a strong reaction in global financial markets, especially in stock indices and the USD exchange rate.

Many analysts believe that the atmosphere of uncertainty could persist without clear information from the U.S. government about the next direction of monetary policy.

What are the next steps in the process of changing Fed leadership?

U.S. law requires the President to be confirmed by the Senate when appointing or dismissing the Fed Chair, ensuring transparency and a mechanism for power control.

This approval process typically takes time and requires significant consensus among parties to avoid negative impacts on the stability of national monetary policy.

Frequently Asked Questions

  • Who is Jerome Powell? The current Chair of the Federal Reserve of the United States, overseeing important monetary policy.

  • Why does Trump want to dismiss Powell? Due to dissatisfaction with the management of monetary policy, affecting the U.S. economy.

  • What is the process for dismissing the Fed Chair? The President proposes, and the Senate confirms according to U.S. law.

  • How does changing Fed leadership affect the markets? It creates an atmosphere of uncertainty, volatility in interest rates, and financial markets.

  • Can the Fed operate independently if leadership changes? Independence remains a fundamental principle but can be influenced by politics.

Source: https://tintucbitcoin.com/powell-co-the-bi-trump-sa-thai/

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