Fed Chairman Jerome Powell is doing all he can to stomp on yawning market worries that President Donald Trump’s Twitter feed is pushing monetary policy.
A highly active presidential Twitter account dictating rates of interest wouldn’t be good for the markets at any point in time.
“I give Powell a lot of credit — lots of people would have mentioned he’s beholden [to Trump],” veteran strategist Matt Maley at Miller Tabak stated on Yahoo Finance’s The First Trade. “I believe Powell has a lot more backbone than lots of people give him credit for.
Others around Wall Street appear to agree with Maley.
“He has been very consistent in regards to the Fed’s independence as has been everyone on the Fed board of governors,” Pimco head of public policy Libby Cantrill informed Yahoo Finance.
“This president has an unconventional approach with the Fed for sure. However, from the market’s perspective, Powell reasserting the Fed’s independence is helpful absolutely,” Cantrill added.
Apart from coming right out in ready remarks to the U.S. House of Representatives on Wednesday and reiterating the Fed’s independence, Powell as soon as again said he has no intentions of being shoved out by the lower rate of interest seeking Trump if asked.
“I would not do that,” Powell informed Representative Maxine Waters (D-CA) Wednesday when pressed if he would depart if requested by Trump. “What I’ve mentioned is the law offers me a four-year term, and I fully intend to serve it.”
It’s an answer that Powell has come to make use of in recent months when probed about his relationship with Trump.