The announcement by Jerome Powell, the Fed chair, that he is the recipient of grand jury subpoenas is very bad news for both the US and world economy.
This goes back to to allegations regarding renovations of a fed building. If you remember well the news conference showed Powell knew more about spreadsheets about buildings than a former property developer!! Trump was shown as a fool.
Attempting to remove a Fed chair for extremely specious reasons will not end well. Just remember property developers even alleged ones always want lower interest rates! Trump's hand picked member wants to cut them by 50 basis points. That is only the first step. Cutting rates and ignoring inflation data will only raise inflation and then they will be reluctant to raise them when it is needed. We have seen this before. Arthur Burns. Se HERE and HERE for two explanations.
If companies see an easy monetary policy then they will increase prices to boost profits hit by tariff measures. Employees will want larger wage rises to compensate for the increase in inflation.
It would take years for the Fed to regain the respect of the markets! This may involve a recession. Just ask Paul Volker.
If have a convicted criminal with limited intelligence then this is what you get. A wannabe dictator
Whoopsy this is done under Pirro who cannot indict a ham sandwich literally!! Perhaps confected smoke and no fire at all.
Okay why the muted market reaction. My guess is the pushback. Perhaps the thinking is the senate will not approve any future trump candidates. however we must not forget Lisa Cook! I have no confidence in the corrupt Supreme court
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