Trump: No Plans to Replace Fed Chairman Powell, Over 85% Chance of Another Rate Cut by the Federal Reserve in December

On Sunday, Trump accepted an interview with NBC and when asked if he would try to replace Powell again, he said there is currently no such plan. (Background: Is the U.S. economy in a severe recession? Analyst: Bankruptcies surge like the financial crisis) (Background: JPMorgan warns: Trump’s victory = inflation storm reappears, Fed may pause rate cuts in December) The new U.S. President Trump has caused increasing discussions recently on whether he would intervene in the Fed’s decisions due to his promises of large-scale deportations of immigrants, imposing tariffs, and tax cuts. In early November, Fed Chairman Powell stated in a post-meeting press conference that the election results would not have a short-term impact on U.S. monetary policy. Powell also stated in a post-meeting press conference that the election results would not have a short-term impact on U.S. monetary policy. When asked if he would resign if Trump demanded it, he said he would not resign because, according to the law, the President does not have the power to dismiss the Fed Chairman appointed by the Senate due to policy differences. Powell stated that the current economic outlook is robust, and the Fed hopes to maintain this stance: Our further adjustments in policy will help maintain the strong momentum in the economy and labor market, over time we will take a more neutral stance to continue progress in inflation. We believe the economy and our policies are in very good shape. Trump: No plans to dismiss Powell Trump accepted an interview with NBC on Sunday and when asked if he would try to replace Powell, he said: No, I don’t think so. I don’t see that happening. I think if I told him to, he would do it. But if I asked him to, he might not (resign). This is Trump’s first public support for Powell since the presidential election. However, after the Fed began raising rates in 2018, Trump has threatened to remove Powell’s position several times, even calling Powell an ‘enemy’ in 2019, and even stating after the big dump in the market due to the pandemic: I think, so far, he has made a lot of wrong decisions… However, Trump also praised Powell for lowering the interest rate to zero to prevent an economic collapse. In short, Trump, whose position is always changing, currently seems to have no intention of dismissing Powell, which should be good news for investors who hate uncertainty risks. Fed’s December rate cut probability According to the CME Fed Watch tool, the market currently expects an 85% probability of a 1-point rate cut this month, while the probability of maintaining the current interest rate is 14.9%. Related reports: 20 Central Banks to announce interest rate decisions this week! Fed’s rate cut coincides with the U.S. election, will the market face a huge wave? BTC surged to $71,500 with a ‘V-shaped big dump’, U.S. non-farm employment hits new post-pandemic low, rate cut in November stabilized? U.S. bond yields continue to rise ‘hitting rate cut expectations’, Dow plunges 400 points, Goldman Sachs: S&P 500’s golden decade is over. ‘Trump: No plans to replace Fed Chairman Powell, Fed’s rate cut probability exceeds 85% in December’ This article was first published on BlockTempo, the most influential blockchain news media in MotionBlock.