If Trump fires Jerome Powell and replaces him with someone more politically pliant, ‘it could be something that backfires on Trump spectacularly,’ researcher says
- President Donald Trump called The Federal Reserve will provide Jerome Powell interest rates to avoid economic slowdown. Still, “it remains to be seen how many exchange rate cuts can actually shock the bleeding,” when it comes to things that are especially vulnerable to tariffs, the researcher said. Plus, if Trump could bear the head of the Central Bank, it could have set a “spectacular” fire. “
The President wants low interest rates. It’s not a secret. He called the Central Bank over and over again. “Price can be any inflation, but it can be a slowdown of the economy, as long as Mr. Shat attention is that large loser, now lowered the interest rates,” said President Donald Trump. wrote In social media, citing the Federal Reserve’s chair Jerome Powell.
But it may not be so cut. Neil Duta, Head of Renaissance Head of Economic Research Neil Drod, warned the Central Bank when it comes to tariffs and trade wars.
“Remember that Fed really doesn’t really have tools to compensate for a commercial war,” Dutta said Monday CNBC: “Think about the economy’s spheres that the trading war affects the most. It is such things in consumer-resistant products. These, as well as remain on the victims.
Tariffs: May cause inflation, but does it happen that one-time shock is a pricing or continuous one that is left to see? Tariffs can cause a slanderAlso, if consumer and business expenses are decreasing, as things become costly. Due to these factors Fed is currently waiting and see in mode. It cannot reduce interest rates, fearing inflation, once again, but if unemployment is problem, the Central Bank can have an alternative. Any way, according to Dutta, interest rates cannot protect consumer goods or apartment It is slowing down and slows down if it has already begun.
“I think we are jumping down,” he said. “We are in it. We are in it, “said Dutan later.
He sees the slowing down of the housing more, decrease and employment of investment costs. He said that the only thing to stop the economy from falling into a policy of politics, he said.
“It simply came to our notice then. It’s a collection, “Dutan continued. “So if he turns off the heat for a week, I mean it can return another week. Thus, such uncertainty maintains markets. “
At some extent, things rested at some extent with the termination of their liberation tariff regime. But in almost two weeks of that time, markets are still circulating, especially because of the verbal attacks of Trump. He recently said The Fed Chair was not able to come quickly quickly, and it caused a discussion, whether Trump could or actually turn to the head of the Central Bank.
“We are already in the worst case scenario for the economy,” Datan said. If Trump sets fire to dust and replaces him with a more political reptile.
This story was originally shown Fortune.com
English