Thursday 21st of November 2024

power to powell — the unelected (B)anker......

Barely a day after declaring victory in the US election, President-elect Donald Trump is facing his first revolt from the establishment.

The world's most powerful central banker has thrown down the gauntlet at the soon-to-be world's most powerful leader, in a struggle between dominance and independence that could define the future of Trump's second tour of the White House.

Federal Reserve chairman Jerome Powell, just hours after delivering Trump's yet to be formed administration a gift in the form of a 0.25 percentage point interest rate cut, declared he was sticking around to serve out his term and the president-elect could not remove him.

"Not permitted under law," Mr Powell told reporters at a press conference after the interest rate decision.

When asked if he would step down if asked by the incoming president, he replied with a terse: "No."

With a contract due to run until May 2026, there appears to be plenty of opportunity for an eventual showdown between the pair.

The independence of 'the Fed' is more than simple political convention.

It operates with legal independence subject to the oversight of Congress and, until Trump, presidents for decades had shied away from any comments about its operations or decisions.

Where it all went wrong

Originally appointed by Trump in February 2018, the then president ignored the conventions, constantly sniping at Powell with a torrent of abuse on Twitter and in interviews, urging the central bank to cut interest rates.

At one stage in 2019 he tweeted: "My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?"

Last month, he resuscitated that fight, arguing the president should have oversight over interest rate decisions, before firing off a series of personal barbs and openly mocking the Fed boss.

"I think it's the greatest job in government," Trump said.

"You show up at the office once a month and you say, 'Let's flip a coin', and everybody talks about you like you're a god."

Later, in an effort to defuse tensions, he dismissed suggestions that he would try to remove the Fed chief but qualified it by adding "especially if I thought he was doing the right thing".

According to an unnamed senior Trump adviser who spoke to CNN immediately after Powell's defiant stance Thursday night, the president-elect will allow Powell to retain his job.

While that assurance may allay immediate concerns about the independence of the world's biggest central bank, it may have been coloured by the rate cut announced just hours before, no doubt pleasing the incoming new president.

The US Federal Reserve has just begun cutting interest rates beginning with a double cut — 0.5 percentage points at its previous meeting — and this week's 0.25 percentage point cut. It is widely expected to continue that program in the new year.

Powell was widely criticised back in 2019 for caving in to pressure from the then president by pumping liquidity into the system at a time when the US economy was starting to run hot. When the pandemic hit, the Fed found itself short of ammunition.

A month ago, despite the pressure he had heaped upon Powell at the time, the president elect laid the blame on the Fed boss for cutting rates in 2019.

Powell, clearly still smarting from the backlash over his capitulation to Trump five years ago, appears determined to enshrine the independence of the world's most powerful central bank and restore his reputation.

Or be terminated for trying.

https://www.abc.net.au/news/2024-11-08/verrender-jerome-powell-defies-trump-on-day-one/104577582

 

SEE ALSO: https://www.youtube.com/watch?v=D3jYBnBln20

 

 

YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

“It’s hard to do cartoons without (B)ankers…”

         Gus Leonisky

 

 

bankers' class.....

https://www.youtube.com/watch?v=KiUMAZGJzyo

Fed Serves the Banker Class, Powell's Shocking Admission & Truth About US Economy | Ryan McMaken

 

Does the Federal Reserve want independence to serve the interests of the banker class? What role has the Federal Reserve played in US politics, and how does it enable the US government's out-of-control spending? Why should the Fed be banned from purchasing assets?

Ryan McMaken and I [LENA PETROVA] discussed whether the Trump administration would seek Fed Chair Jerome Powell's resignation, how the Fed has enabled government spending on programs that do not benefit the American people, its role as a servant of the banker class, and whether it should be abolished. Ryan shared many important insights into the state of the US economy, the labor market, the Fed's goal with inflation, and what it all means for the US population.

 

 

READ FROM TOP.

 

YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

“It’s hard to do cartoons without (b)ankers…”

         Gus Leonisky