Trump asked officials if he can legally fire Fed chair

Traders work on the floor of the New York Stock Exchange in New York Monday Dec. 24 2018

Traders work on the floor of the New York Stock Exchange in New York Monday Dec. 24 2018

US Treasury Secretary Steve Mnuchin looked to quash big-bank worries over recent plunging stock markets and reports that US President Donald Trump might sack his Federal Reserve chief by reassuring the financial community on Sunday that market liquidity is in good shape.

The mixed regional bag came after Mnuchin spent much of the weekend in damage control mode following multiple media outlets reporting that Trump had privately asked cabinet members if he has the authority to fire Fed Chairman Jerome Powell. The benchmark S&P 500 stock index (.SPX) is on pace for its biggest percentage decline in December since the Great Depression.

Mnuchin and other senior administration officials had been discussing for days how to calm investors without coming across as desperate or preachy, but they have struggled to find the right balance, leaving an opening for Trump to continue berating the Fed.

Bloomberg News reported on Saturday morning that Trump has discussed firing Powell over concerns about slowing the economy, though his advisers aren't certain he'll take the plunge. "Feel the market, don't just go by meaningless numbers", he said.

"The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!" he added.

USA markets were hit hard Monday, with selling intensifying into the close.

US Treasury Secretary Steven Mnuchin is to hold a telephone conference on Monday with top market regulators, after the Dow and the Nasdaq suffered their worst week since 2008.

Even with USA stock markets on the skids for weeks, and the federal government in a partial shutdown since Saturday, many market-watchers wondered whether there's something more systemic going on.

They're stunned by Treasury Secretary Steve Mnuchin's odd call to bank CEOs.

All three United States indexes closed lower last week, with the technology-focused Nasdaq down 20% since its peak, placing it in so-called "bear market" territory. Rather, it's created to make sure key market participants are communicating about critical issues.

Turkish forces will cross into Kurdish-held Syria, insists foreign minister
US President Donald Trump last week said he will begin pulling out almost 2,000 American soldiers from Syria. The Kurdish-led force liberated the town from militants earlier this month.

"He also confirmed that they have not experienced any clearance or margin issues, and that the markets continue to function properly".

In a November 27 interview with The Washington Post, Trump said: "I'm not happy with the Fed".

President Trump, meanwhile, renewed his verbal assault on the Federal Reserve on Monday, blaming the central bank for mounting fears over the USA economy and comparing it to a blundering golfer.

"The law is, at best, ambiguous", Cornerstone Macro partner Roberto Perli wrote on Monday. The group includes market regulators and Federal Reserve governors, among others.

"Typically, "for cause" is understood to apply to situations where someone commits egregious ethical violations, crimes, fails alcohol or drug tests, etc.", Perli said.

According to Bloomberg, it's unclear whether Trump has the legal authority to fire Powell, as the rules about removing the head of the Federal Reserve are ambiguous. I think he's trying to do what he thinks is best.

The economy and financial markets - stocks, bonds, commodities - are made up of a constellation of factors that are not synchronized.

The mood on Wall Street contrasts with the normal pattern around the holidays, when optimistic investors often push stocks higher in a "Santa Claus rally".

"We are dealing with one of the more respected parts of the administration from a Wall Street point of view".

The team was also convened during the 2007-09 financial crisis.

Recommended News

  • Moment’s new cases can make your Pixel 3 camera even better

    Moment’s new cases can make your Pixel 3 camera even better

    Duplex could either be a super helpful Google Assistant feature, or a really good example of just how creepy AI is getting. The current function is available only in city to city basis but it is expected to grow in other cities also.
    Global Augmented Reality Book Market to Witness Fabulous Growth by 2025

    Global Augmented Reality Book Market to Witness Fabulous Growth by 2025

    The report has discussed emerging globalization trends, product escalation study, and exceeding production capacity in the market. The virtual reality segment registered highest market share and was valued at US$ 3,498 Mn in 2016 globally.
    Trump misleads about military pay raises again

    Trump misleads about military pay raises again

    Trump made the 11-hour flight on a darkened Air Force One with lights off and window shades drawn plus military jet escorts. Speaking to troops at Al Asad Air Base during his surprise visit to Iraq, Trump told troops: "You protect us".
  • Inclement weather shuts down bowl game that Dallas paid oodles for

    Inclement weather shuts down bowl game that Dallas paid oodles for

    BC jumped out to an early 7-0 lead on a nice 19-yard touchdown run by A.J. Usually the weather plays out to play the game.
    Saudi King Orders Cabinet Shakeup In Light Of Khashoggi Killing Fallout

    Saudi King Orders Cabinet Shakeup In Light Of Khashoggi Killing Fallout

    The king issued a number of other royal decrees, which were read on state TV, that replaced the ministers of media and education. Prince Sultan bin Salman was appointed the head of a new entity which will be called the Saudi Aerospace Commission.
    Eddie Murphy Poses With His 10 Kids For Christmas

    Eddie Murphy Poses With His 10 Kids For Christmas

    Eddie Murphy just posed for the holiday card to end all holiday cards. "Merry Christmas!" Bria captioned the shot. Proud grannies Lillian Murphy , Eddie's mum, and Paige's fashion designer mother looked glam in front.
  • Black Mirror: Bandersnatch Cast, Director, Synopsis Leaked

    Black Mirror: Bandersnatch Cast, Director, Synopsis Leaked

    Throughout the trailer, words popped up on the screen that seemingly told viewers that they could alter their own reality. Co-starring Asim Chaudhry, Will Poulter, and Alice Lowe, Bandersnatch arrives on Netflix tomorrow, December 28.
    Midwest Winter Storm Forecast, Path

    Midwest Winter Storm Forecast, Path

    The weather service forecast 8 to 13 inches of snow across northern, central and western Minnesota by the end of the work week. The post-Christmas storm was snarling travel following the holiday, and more than a foot of snow was expected in some areas.
    Two vagrants arrested for attacking cop on subway platform

    Two vagrants arrested for attacking cop on subway platform

    A cop was hailed a hero after a frightening video emerged showing him fight off five violent drunks on a subway platform. New York City Mayor Bill De Blasio also lauded the officer's exhibition of "extraordinary professionalism and bravery".
  • US Government Shutdown Enters Day 5

    US Government Shutdown Enters Day 5

    The shutdown has been playing out against the backdrop of turmoil in the stock market, which is having a roller-coaster week. Those being furloughed include 52,000 workers at the Internal Revenue Service and almost everyone at NASA.
    Iran Holds Talks With Afghan Taliban, Says Official

    Iran Holds Talks With Afghan Taliban, Says Official

    He also underlined that Tehran-Kabul cooperation will greatly contribute to the resolution of security problems in Afghanistan. Shamkhani also described the threat of the expansion of the Takfiri terrorist group of Daesh in Afghanistan as "serious".
    PlayStation Plus January Lineup includes Steep and Portal Knights

    PlayStation Plus January Lineup includes Steep and Portal Knights

    Unfortunately, this quality doesn't quite extend to the PlayStation 4 lineup which is...lacking, comparatively at least. Sony recognizes it and that's why it revealed the lineup of titles that will be added to the Instant Game Collection .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.