Donald Trump
Although the Federal Reserve is an independent organization, it is accountable to the Congress. Congress has to listen to the President again.
The idea that a dispute between the White House and the Federal Reserve will start a debate has long been postponed in the past year. US shares rose, growth has increased; But the usual spirits of the economy have not been lost in the Fed's work. President Trump has adapted well with former Federer chairman Janet Yellen. The event will remain famous on the pages of history.
This peace has ended quite strongly. Investors feel that the Fed is considering seriously considering the interest rate hike to keep the inflation under the new leadership seriously. They started the rift to stop the collapse of the economy.
The US S & P 500 index fell 2 percent on February 2. After the US Bureau of Labor Statisticians announced that, in January, the income of the employers increased by 2.4 percent, the fall in the next session was 4 percent. There is a possibility that the Fed will be aggressive in dealing with inflation due to wage hikes.
Trump shares may not be able to clear the rates of shares, although he has repeatedly said that the increase in the price of shares before the fall has given legitimacy to his presidency. On January 30th, he proudly said in the State of the Union speech that after he was elected, a new record was made in the stock market one after the other. This time the price has risen to eight trillion dollars. "On February 7, after the tweets, Trump said the fall of the stock was a" big mistake ". 'There is a lot of good news about the economy'
But if this is not a mere mild phase, then a trump can find someone who can be blamed. And that person can be Jerome 'J' Powell, who took oath as Chairman of the Fed on February 5. Although the Fed is an independent organization, Congress is responsible for it, the Congress has to pay attention to the President's words. Adam Pausen, former banker of the Bank of England, said, "I do not think the Fed is afraid of the White House in any way. But they fear and respect the Congress, and there is tremendous authority over the Congress. "
However, Trump is not the first, but before that many presidents pressure the Fed chief to keep interest rates low. In 1965 President Lyndon Johnson did not succeed with William Moulinzie. But Richard Nixon succeeded in reducing interest rates by pressing Arthur Barnes, William's successor in 1971. The inflation rate was much increased due to the burning liquidity monetary policy of Barnes. Posen said that the interest rates do not need to increase so much, due to which the Fed's relationship with trumps could go to the final stage. But if the President is unhappy, no one can hold him alive. In that case, he may tweet at midnight on Twitter in the tweet.
People from the Republican genre have read the law at Powell Georgetown and Princeton University. He has government work experience, as well as Wall Street. Looks like the signs, he is able to handle the pressure. But for that he has to gather all his powers. The Federal Reserve's former president Charles Possar said, "The Fed might be pressurized to bring the political influence, I'm afraid. It's enough tempting to come from both the right and the left. "But he thinks the Fed will be even stronger.
Note that the growth of the US economy is on the rise. Due to this, inflation is expected to increase. This means that the United States Federal Reserve will increase the interest rate soon. Because of this, many investors in the United States and Asia have withdrawn money from the market. That's why the stock market collapses worldwide. Trump can now be difficult to increase interest rates. Source: Bloomberg