The Finance 202: Powell has mixed news for Trump

The Finance 202: Powell has mixed news for Trump

4 Weird Signs You’ll Live Past 100 WASHINGTON – Federal Reserve Chair Jerome Powell offered President Donald Trump some bad news, some good news, and some worrying news when he testified before Congress on Wednesday. The bad news: Powell won’t leave his post without a fight, if the president tries to fire or demote him. The central bank chief implied as much in response to a question from House Financial Services Committee Chairwoman Maxine Waters, D-Calif., about what he’d do if Trump called and fired him. "Of course, I would not do that," Powell replied. "My answer would be no." The good news: The Fed is likely to cut interest rates by a quarter-point at the end of the month, meeting Trump’s demands for more accommodative monetary policy. Some Fed watchers had speculated that the trade truce Trump struck with Chinese President Xi Jinping at the G-20 summit last month would remove a major, looming threat to the economy, thereby convincing the central bank to hold off on any rate cuts for the time being. Powell signaled that the Fed is likely to deliver a modest rate cut at the end of month anyway. The worrying news: The reason the Fed is likely to proceed with the cut is that the central bank still sees storm clouds gathering at home and abroad that threaten the economic expansion – a bracing assessment for a president counting on a strong economy to buoy his reelection bid. "Uncertainties about the outlook have […]

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