US Senator Elizabeth Warren warned that if President Donald Trump finally succeeded in dismissing the Federal Reserve Chair Jerome Powell, he could damage investors’ confidence in the integrity of the US capital markets and mobilize the financial crash.
During the CNBC’s hearing, Massachusetts senator said the president did not have the legal authority to remove Powell from his post. In addition, removal of Powell will weaken US financial infrastructure, Warren added:
“If Chairman Powell can be fired by the President of the United States, he will crash markets. Infrastructure, which keeps this stock market stronger and, therefore, a large part of our economy is strong, and a large part of the global economy is strong, thinking that large pieces are free from politics.”
Warren added, “If interest rates in the United States are subject to a president who just wants to wane his magic wand, it does not distinguish us from any two -bit dictatorship.”
President Trump has repeatedly called for the elimination of Paul, citing reluctance to reduce the chairman’s interest rates. Low interest rates are generally regarded as a positive catalist of the prices of assets, including in crypto currencies, and can change the misery of the market brought through trade war and current economic pressure.
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Trump’s quarrel with the Federal Reserve Chairman
Trump criticized Paul for not reducing interest rates, and on April 17 demanded his removal in the social post of truth, which gave speculation to inflammation that he would pursue risks and find a way to remove the chairman.
Senator Rick Scott echoed Trump’s calls to remove the pavilion. “Now is the time to clean the house of everyone working in the Federal Reserve who is not involved in helping the American people and fighting for their best interests.”
The Trump administration has repeatedly said that reducing interest rates is a top priority. Market analyst and investor Anthony Pompeliono recently speculated that Trump deliberately forced financial markets to force interest rates.
At that time, Pompeliono cited only 4 % reduction in the production of 10 -year -old US Treasury Bond. Since then, the production of 10 -year bonds has been withdrawn up to 4.3 %.
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