White House advisors say President Donald Trump has no authority to cut Federal Reserve Chairman Jerome Powell over to raise interest rates to quell speculation that Trump's anger over monetary policy is a confrontation could endanger volatile financial markets.
Mick Mulvaney, the presidential chief of staff, said on Sunday's ABC's "This Week" that Trump "now realizes" he can not fire the Fed chairman. This follows Finance Minister Steven Mnuchin's statement on Saturday that the president did not propose shooting Powell and did not believe he could do so.
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Trump had called on the Fed not to set interest rates in the days leading up to a two-day Central Bank meeting The Bank unanimously agreed to raise the key interest rate by a quarter of a percentage point. The president was furious with the Fed's actions, people familiar with the issue say, and is also dissatisfied with the central bank's efforts to reduce its 2008-acquired debt.
Trump blamed the Central Bank for market disruptions. He's been talking to Jay Powell's advisers recently about Powell, wondering aloud if he could fire the Fed leader, even though counselors were not sure he was serious, such a person who trusts the matter was.
An enhanced version of this report appears on WSJ.com.
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