INSUBCONTINENT EXCLUSIVE:
By Jennifer Jacobs, Saleha Mohsin and Margaret TalevPresident Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell as
Powell many times in the past few days, said two of the people.
Any attempt by Trump to push out Powell would have potentially devastating
It would come as markets have plummeted in recent weeks, with the major stock indexes already down sharply for the year.
White House
administration have often been a first step toward their departures -- including former Attorney General Jeff Sessions, his first Secretary
extends to him or her, but the rules around firing the leader are legally ambiguous, as Peter Conti-Brown of the University of Pennsylvania
independence of the central bank.
That separation of politics from monetary policy is supposed to instill confidence that Fed officials will
has greatly intensified in recent days, said two of the people
financial markets.
Even routine changes at the top of central banks create uncertainty in markets as investors try to assess how tough a new
leader may be in preventing the economy from overheating and accelerating inflation
same fate as Powell.
Trump is in the midst of a rolling shake-up of his administration
At the same, the threat of a government shutdown has added to the sense among investors of disarray in Washington.
Equities just recorded
their worst week since 2011, with the SP 500 falling 7.1 percent and the Nasdaq Composite descending into a bear market
Fed.
Powell has borne the brunt of the criticism recently, peppered by public complaints about interest rates from the president and at
least one of his advisers
Market Committee announcement day since 2011.
