JPMorgan Chase Wealth Management: Trump “Very Eager” to Dismiss Powell and Cut Interest Rates

Blockbeats
04-18

BlockBeats News, April 18th - Kathy Jones, Chief Fixed Income Strategist at Charles Schwab Center for Financial Research, stated that investors should not overlook the possibility of Trump trying to fulfill his threat to fire Powell. She said, "He is very keen to fire Powell and lower interest rates, that is very clear."

Despite Powell's reaffirmation on Wednesday that current law protects Federal Reserve members from being fired by the White House for political reasons, an upcoming Supreme Court ruling could make it easier for Trump to do so.

Analysts led by Krishna Guha at Evercore ISI warned that the ruling in Trump v. Wilkocase might expand the president's power, allowing the dismissal of institutions previously considered immune to political pressure, thus undermining the Fed's and other government agencies' independence. (FX678)

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