Many people are in wonder if Federal Reserve Chair Jerome H. Powell will still remain in charge of the Federal Reserve Banks.
Reporters questioned the president’s top economic adviser Tuesday if Powell will remain in office. Larry Kudlow told reporters at the CNBC Capital Exchange event, “There is no effort to remove him. I will say that unequivocally at the present time. Yes, he’s safe. To be very clear, there are no plans presently to change Mr. Powell’s job or any of that sort of thing.”
For several months, President Trump has been requesting the Feds to cut the interest rates. It would be in the president’s favor if Powell pushes the order through. The stock market would skyrocket, and the economy will get another boost.
The economy is already at an all-time high since President Trump has been in The White House. Powell still has not complied with the president’s request, and there were suggestions from the president that he was fixing to remove Powell from the office. Officials from the White House say there is no plan in action at the moment to do so.
The Fed stays pretty much out of politics, as lenders do what is best for America’s economy over the long term. Powell’s argument is he feels it is only a short-term fix for Trump to get re-elected.
Technically, if he would stop and think about what he feels is not accurate because the long term fix is keeping President Trump in office. This is the only fix to 98 percent of America’s problems. We see that as he as the president has proven he has done what no other president has ever done.
For starters, he has kept his promises. Not many politicians can say that, especially the Democrats. But Trump is a businessman and knows about banks, interest rates, and he has proven he knows what is best for the economy. Just look around at the booming economy.
Powell was nominated by the president and approved by the Senate. With Powell playing around, President Trump is growing impatient, as he has already shared some of his regret about putting Powell in the chair.
For now, Powell may be safe, but President Trump does not play when it comes to business. He wants what he wants, and he wants it yesterday. When the President requested the interest rates be lowered, he wanted it lowered as soon as he finished giving the order.
Powell feels he cannot be removed from the office, but President Trump says there is a loophole, and Powell can be demoted.
Kudlow defended the President when he criticized the Fed. He brought up the facts about the economy and how the unemployment rate is at an all-time low. He said lowering the interest rates will not trigger inflation so he feels Powell should shut up and do what the president asked.
Kudlow stated, “The Fed should be independent, but that word ‘independent,’ I mean, it doesn’t mean they operate from another planet. That doesn’t mean that they shouldn’t listen to advice from their elders.”
There are seven spots on the Federal Board. Two of those spots at this time are currently vacant. President Trump said he will nominate economist Christopher Waller and Conservative scholar Judy Shelton to the two vacant seats.
Both Waller and Shelton are in favor and will support lowering the interest rates Powell has such a hard time doing.
Kudlow stated, “There is no shortage of candidates to fill the Fed Positions.” Trump has nominated four recently, and they all failed to get the approval from the Senate which is controlled by Republicans.
It is not that they were against the president’s choices, they just have so many on the list to choose from, they want to make sure they have the right choice for the positions.
Powell was scheduled to testify on Wednesday and Thursday before the House Financial Services Committee and the Senate Banking Committee.
The United States economy is kicking and is looking good, but they are planning to get the interest rates lowered with these meetings from 2.35 percent to 2.1 percent. The plan is to drop the interest by the end of the month, and these two meetings will get the ball rolling.
Finally, Powell will do what the president is requesting after several months of waiting. This will close the gap in the trade war and expand any weak areas of growth overseas.