Trump confirms Powell's position as Fed chair until 2026 term, discloses in TV interview
LOL, TRUMP SAYS HE AIN'T FIRE INDEX POWELL YET:
In a nutshell, Donald Trump declared he won't can Jerome Powell as the Fed Chair before his term ends in 2026. And guess what? Powell ain't exactly his biggest fan, but Trump reckons he'll eventually lower them rates.
During an interview with Meet the Press, filmed in Florida last Friday, Trump went on to say that ol' Powers (that's what we're gonna call him now) is a total stiff. Now, when ya hear that coming from the mouth of our beloved 45, you know it ain't all roses. He later defined ol' Powers as not exactly being a Trump fanboy.
When asked whether he'd fire Powell before the term is up, Trump, for the first time, gave a definite "No, way." So there ya have it, ol' Powers is staying put. Ain't no slim chance of getting the old heave-ho from Donnie 'till 2026.
Markets breathed a sigh of relief when they heard Trump's words, thinking hey, maybe the global trade system won't be+ completely rearranged by tariffs. After all, Trump had been putting the smackdown on ol' Powers and causing the markets to swoon back in September. But Trump, being Trump, he backed off a little bit after that.
So, ol' Powers is sticking around. And with Tuesday's comments, we can assume markets will keep on dancing. But remember, even though ol' Powers is chillin' now, Trump's still got his tariffs on the go. He's been trading 'em with pretty much every country under the sun, and there ain't no sign of him slowin' down soon. Look out for the first trade deal to be announced any minute now.
Now, Trump did say he might keep some tariffs permanent, but he didn't actually say which ones. And guess who's China's economy is taking a hit from those tariffs. We've cut them off, yea, and China seems to have had enough. They want to make a deal, and who are we to say no? As long as it's a fair deal, right?
Sources:
- Jerome Powell Presidency: https://www.federalreserve.gov/newsevents/speech/powell20201202a.htm
- Senate Confirms Powell for Second Term: https://www.reuters.com/business/powell-wins-confirmation-second-term-leading-federal-reserve-2022-01-26/
- despite Trump's statements, Powell might not be a fan of the President's defi on interest rates.
- In 2026, even if war-and-conflicts and politics don't interfere, Powell's term as the Fed Chair will still end.
- The statement about not firing Powell could lead to migrations of stocks, given the impact Powell's policies and legislation have on the general news.
- Trump's decision not to fire Powell now doesn't mean he won't trade harsh words with the Fed Chair in the future.
- The global trading environment might become more stable due to the denial of a potential firing, but the threat of tariffs remains a significant factor.
- The permanent implementation of certain tariffs could impact policies and legislation, leading to further changes in the stock market in the coming years.
- The trading landscape could be significantly different in 2026, depending on the migration of tariffs, war-and-conflicts, and politics, as well as Powell's stance on policy-and-legislation.
