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US
President Donald Trump picked Jerome Powell to lead the Federal Reserve,
but
has launched unprecedented attacks on the independent central bank
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President Donald Trump has privately asked cabinet members if he has the authority to fire Federal Reserve Chairman Jerome Powell after interest rates were increased and the stock market plummeted, US media reported Saturday.
CNN and
Bloomberg, citing unnamed people familiar with the matter, said that Trump was
furious when the Fed raised the key borrowing rate on Wednesday and signaled it
will continue to hike rates next year.
Treasury
Secretary Steven Mnuchin, however, quoted Trump as denying any plan to remove
Powell.
"I
never suggested firing Chairman Jay Powell, nor do I believe I have the right
to do so," Trump said, according to comments relayed on Twitter by
Mnuchin.
An attempt
to end Powell's term early would be a direct attack on the independence of the
powerful Fed, which plays a major role in the world's largest economy.
It would
also likely create havoc in the stock market.
Trump's
aggressive trade policies combined with the strong US dollar have already
created fears of slowing US and global growth, and caused markets to retreat.
On Friday
Wall Street suffered its third straight rout, ending its worst week since late
2008 at the start of the global financial crisis.
Powell,
chosen by Trump for the job, took over as head of the US central bank for a
four-year term in February, replacing Janet Yellen.
On Tuesday
the president warned the Fed not to make "yet another mistake" by
raising interest rates, the second consecutive day he had gone after the
central bank on Twitter.
Trump has
ignored the US president's traditional respect for the Fed's independence,
calling the agency "crazy," "out of control" and a greater
economic threat than China.
In October,
Trump said he had no intention of firing Powell, but in November declared that
he was "not even a little bit happy" with the Fed chairman.
It was
unclear if Trump has the authority to fire him, according to US media.
A Fed
spokesperson was not immediately available for comment when contacted by AFP.
US
President Donald Trump picked Jerome Powell to lead the Federal Reserve, but
has launched unprecedented attacks on the independent central bank.
List of notable departures from the Trump's White House as the US president has reportedly asked if he has the authority to fire Federal Reserve Chairman Jerome Powellhttps://t.co/nM7Si2owb3 pic.twitter.com/oEyYynBpZT— AFP news agency (@AFP) December 23, 2018
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