Mnuchin tweets Trump denial as Republicans warn against firing Fed chairman

Author: , Post Date: December 22, 2018
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By BURGESS EVERETT, BEN WHITE and VICTORIA GUIDA 12/22/2018 03:50 PM EST – Updated 12/22/2018 08:21 PM EST

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Financial markets have cratered in recent days amid a partial government shutdown, rising interest rates and signs of a slowing economy. Shelby said Trump did not bring up the prospect of firing Powell at a lunch with congressional Republicans on Saturday.

Wall Street traders and money managers argue that the president would inject chaos and uncertainty into already fragile markets if he fired the Fed chair because he doesn’t like his interest rate decisions,

“Market agents may disagree on the policy but they respect the person,” David Kotok, chief investment officer at Cumberland Advisors, said of Powell. “The nation is best served if the president avoids the personalized attacks. Markets want an independent and skilled Fed chair, not a Trump patsy.”

It’s unclear what specifically Trump can do to Powell. The president can remove a member of the Fed board only “for cause,” which does not include policy disagreements.

Read the full story at POLITICO.

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