President Trump will not renominate Jerome Powell for another term as Fed Chairman if re-elected.
“That will lead to very different monetary policy, so the Fed is not fully independent of politics,” former Fed VC Fischer, an Hussein Obama appointee, said Sunday at a talk in Israel.
By criticizing Fed policy, President Trump created “a really awkward thing” for Mr. Powell, Mr. Fischer said. He added that he has been in a similar hotseat before, having had a tough time maintaining central bank independence when he was governor of the Bank of Israel from Y’s 2005 to 2013.
Mr. Fischer said President Trump has nothing to lose from accusing the Fed of fueling a recession by raising interest rates at its December meeting: He can either claim to be correct if there is a recession or go quiet if the prediction does not pan out.
“What the President has understood is that he can have a one-way bet by announcing what he thinks they should have done,” Mr. Fischer said. “He has a perfect option and he will use it, and he’s much more sophisticated in the media than previous Presidents have been.”
Monday, the major US stock market indexes finished up a bit at: DJIA +22.92 at 26112.53, NAS Comp +48.37 at 7845.01, S&P 500 +2.69 at 2889.67
Volume: Trade in the NYSE came in light again at 682-M/shares exchanged
- NAS Comp +18.2% YTD
- S&P 500 +15.3% YTD
- Russell 2000 +13.6% YTD
- DJIA +11.9% YTD
HeffX-LTN’s overall technical outlook on the major US stock market indexes is Neutral to Bullish in here.