Donald Trump wanting to oust the Federal Reserve Chair is a ‘grey area’
JP Morgan Global Market Strategist Kerry Craig comments on US President Donald Trump’s critique of Federal Reserve Chair Jerome Powell, claiming it’s a “grey area” if the President wishes to oust the chair.
“There’s a bit of a grey area when it comes to the authority between the US government, the White House, and what it does over the US Federal Reserve – it’s meant to be independent, that’s how central banks work,” Mr Craig said.
“Right now, there is a legal challenge going through the Supreme Court which could set a precedent for the ability for the president or the White House to remove Jerome Powell, but until that actually happens, there’s nothing to say that the president can oust the Central Bank.
“Obviously, the consequences of the tariffs that have been announced are inflationary … the question is how permanent those inflationary pressures will be.”
