Is Trump setting up Jerome Powell to be a scapegoat for a US downturn or even recession? | ABC NEWS
The ‘sell America trade’ is ramping up as US President Donald Trump bullies the head of the US Federal Reserve to lower interest rates. Investors, again spooked by the rhetoric coming out of the White House, dumped stocks and bonds and the US dollar hit a three-year low. It was Trump’s attack on Jerome Powell in a post on Truth Social in which he referred to the head central banker as a “loser”, that sparked the selling. Head of Market Economics at NAB, Tapas Strickland says one explanation of Trump’s behaviour is that he wants to establish Jerome Powell as the scapegoat for a US recession. But he says it’s important to remember markets aren’t pricing the certainty of a recession.
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