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Insider: Mnuchin Advises Trump Against Firing Powell
Summary: According to sources, US Treasury Secretary Mnuchin has privately advised President Trump in recent days not to attempt to dismiss Federal Reserve Chairman Powell. Mnuchin's reasons include potential economic and market impacts, the Fed's likely rate cuts later this year, and the political and legal obstacles to dismissal. Mnuchin believes firing Powell is unnecessary as ...
According to sources, US Treasury Secretary Mnuchin has privately advised President Trump in recent days not to attempt to dismiss Federal Reserve Chairman Powell. Mnuchin's reasons include potential economic and market impacts, the Fed's likely rate cuts later this year, and the political and legal obstacles to dismissal. Mnuchin believes firing Powell is unnecessary as the economy is performing well, markets are responding positively to the president's policies, and Fed officials have signaled possible rate cuts before year-end. If Powell were fired before his term ends, he could file a lawsuit that might drag into next spring, coinciding with the end of his term. Mnuchin also noted that Governor Quarles' term ends in January next year, and Powell's term ends in May, providing Trump with one to two vacancies to fill early next year. Mnuchin's cautious approach contrasts with some government officials considering more aggressive strategies. Trump had previously expressed confidence in Mnuchin.
