It's happening faster than expected.

The whispers are now in the headlines. Trump want's Powell Out.

Powell's days are numbered at the Federal Reserve because he refuses to partake in the destruction of the US Dollar. The IMF are losing patience.

To be clear, Kamala and Trump were both given this mandate. Brace yourself for CBDCs.

…#Trump does not have the authority to fire #JeromePowell, except for "cause," meaning some kind of bad behavior. #SCOTUS precedent supports that view. But the White House has signaled a willingness to test that standard, firing board members of other #independent #FederalAgencies.

Powell said on Wednesday that lawmakers from both parties have generally defended the #Fed's ability to set interest rate policy without interference.

As a result, #JeromePowell said, the central bank is "well positioned to wait for greater clarity" before considering any reduction in interest rates.

#Trump called Powell's report a "complete mess," arguing "Oil prices are down, groceries (even eggs!) are down, & the USA is getting RICH ON TARIFFS."

While oil prices have fallen in response to fears of a global economic slowdown, #grocery prices actually rose last month….The price of #eggs jumped nearly 6% Feb to March….

#Trump's post came a day after #JeromePowell warned that the #tariffs from the Trump admin are likely to cause both higher prices & slower economic growth.

"Tariffs are highly likely to generate at least a temporary rise in #inflation," Powell told the Economic Club of Chicago, noting that Trump's import #taxes were higher than most forecasters had expected. "The inflationary effects could also be more persistent."

#Trump was evidently frustrated that the European Central Bank was preparing to lower interest rates for the 7th time, while the #FederalReserve is in a holding pattern. Of course, European leaders have not imposed triple-digit #tariffs which threaten to rekindle #inflation.

The 3 major #US #stock indexes extended declines in afternoon trading on Wednesday while #JeromePowell spoke.

"Powell’s saying what the market has been fearing all along. And it’s coming from the Fed chief, confirming all these things," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

#US #economy #Trump #policy #Fed #US #law #regulation #currency #inflation #tariffs #recession

#JeromePowell said #Fed independence is a matter of #law! [tyvm]

His remarks on Fed independence drew a round of audience applause in Chicago.

He said:

We are protected in the law

Fed independence has broad support across political parties

I don't think the case before #SCOTUS on independent agencies will apply to the Fed

Fed is not going to be influenced by political pressure

#US #economy #Trump #policy #US #law #regulation #currency #inflation #tariffs #recession

#AI likely to bring dramatic change, #JeromePowell says

Powell also said:
AI is more than a better version of Google, and it's like a better version of a person [at least he doesn’t confuse it with a steak sauce]

AI is one of the two or three things likely to bring dramatic change to the economy

It's hard to know how it will shakeout

#US #economy #Trump #policy #Fed #US #law #regulation #currency #inflation #tariffs #recession

#JeromePowell on #cryptocurrency

#Crypto is becoming more mainstream, & a #legal framework for #stablecoins is a good idea

Stablecoins could have wide appeal, & *should* have #ConsumerProtections!

There will be some loosening of rules to allow innovation, but it needs to be done in ways that does not make banks less safe & sound

#US #economy #Trump #policy #Fed #US #law #regulation #currency #inflation #tariffs #recession

#JeromePowell on #US #debt

Federal debt is on an unsustainable path, though not at an unsustainable level.

Running large deficits w/full employment is a situation the country has to address

Domestic discretionary spending is small & declining as a share of federal spending; that is not the problem

So much of the dialogue from politicians is about discretionary spending, which is not the issue.

#US #economy #Trump #policy #Fed #US #inflation #tariffs #recession

The #Federal is ready to provide #dollar liquidity through its swap lines w/other central banks as needed, #JeromePowell said.

"We want to make sure that dollars are available.”

"The reason we do it is it's really good for US consumers, so we'll do that just as part of the dollar being a reserve currency.”

Reserves are still abundant

Not close to where Fed would stop balance sheet runoff

The slower the Fed goes, the smaller the balance sheet can get w/o disruption

#economy #Trump

#JeromePowell said #markets are processing the #policy changes, but they are functioning.

"What I think is going on in markets is markets are processing what's going on, markets are struggling with a lot of #uncertainty & that means #volatility.”

He also said that volatility is likely to continue given the high uncertainty.

#US #economy #Trump #Fed #US #inflation #tariffs

#JeromePowell says #Fed could have to make a difficult decision.

The Fed's 2 goals are not yet in tension, but the potential is leading to simultaneous higher #unemployment & higher #inflation.

The tension between employment & inflation goals would be a difficult position for the Fed to lower rates.

#US #economy #Trump #policy #JeromePowell #Fed #US #inflation #tariffs

#JeromePowell said that #trade policies pursued by the Trump admin will create challenges for the central bank to meet its #job & #inflation mandates this year.

The new trade policies represent significant change.

"The effects of that are likely to move us away from our goals, so #unemployment is likely to go up as the #economy slows in all likelihood, & inflation is likely to go up as #tariffs find their way" into the economy.

He added this will likely play out over the course of the year.