Federal Reserve chairman Jerome Powell defies Trump on day one
"Let's be faithful to USA - 5 things you need to know about Susie Wiles "Cost of living/ immigration -- Voters Were Fed Up Over Immigration. They Voted for Trump.""
by chief business correspondent Ian Verrender
4 hours ago
US Federal Reserve chairman Jerome Powell says he won't quit and that Donald Trump has no power to sack him. (Reuters: Kevin Lamarque)
Barely a day after declaring victory in the US election, President-elect Donald Trump is facing his first revolt from the establishment.
The world's most powerful central banker has thrown down the gauntlet at the soon-to-be world's most powerful leader, in a struggle between dominance and independence that could define the future of Trump's second tour of the White House.
Federal Reserve chairman Jerome Powell, just hours after delivering Trump's yet to be formed administration a gift in the form of a 0.25 percentage point interest rate cut, declared he was sticking around to serve out his term and the president-elect could not remove him.
"Not permitted under law," Mr Powell told reporters at a press conference after the interest rate decision.
When asked if he would step down if asked by the incoming president, he replied with a terse: "No."
US Federal Reserve chair says he won't quit if Trump orders
With a contract due to run until May 2026, there appears to be plenty of opportunity for an eventual showdown between the pair.
The independence of 'the Fed' is more than simple political convention.
It operates with legal independence subject to the oversight of Congress and, until Trump, presidents for decades had shied away from any comments about its operations or decisions.
Where it all went wrong
Originally appointed by Trump in February 2018, the then president ignored the conventions, constantly sniping at Powell with a torrent of abuse on Twitter and in interviews, urging the central bank to cut interest rates.
At one stage in 2019 he tweeted: "My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?"
"I think it's the greatest job in government," Trump said.
"You show up at the office once a month and you say, 'Let's flip a coin', and everybody talks about you like you're a god."
Later, in an effort to defuse tensions, he dismissed suggestions that he would try to remove the Fed chief but qualified it by adding "especially if I thought he was doing the right thing".
While that assurance may allay immediate concerns about the independence of the world's biggest central bank, it may have been coloured by the rate cut announced just hours before, no doubt pleasing the incoming new president.
The US Federal Reserve has just begun cutting interest rates beginning with a double cut — 0.5 percentage points at its previous meeting — and this week's 0.25 percentage point cut. It is widely expected to continue that program in the new year.
Powell was widely criticised back in 2019 for caving in to pressure from the then president by pumping liquidity into the system at a time when the US economy was starting to run hot. When the pandemic hit, the Fed found itself short of ammunition.
Powell, clearly still smarting from the backlash over his capitulation to Trump five years ago, appears determined to enshrine the independence of the world's most powerful central bank and restore his reputation.
Or be terminated for trying.
VIDEO
Will Trump try to muscle the greenback lower in his global trade war?
Trump's tariff plans have garnered most attention since his re-election.
But his stance on monetary policy could be every bit as damaging to the global economy as interest rate and currency moves can be enormously powerful weapons when it comes to international trade.
Half a century ago, political strong men would boast about the strength of their national currency, claiming it as a measure of global respect.
These days, it's the opposite. A weaker currency delivers instant extra competitiveness on the global stage.
By artificially lowering interest rates, central banks can weaken the currency and gain an advantage over rivals.
A weaker currency makes your exports more competitive and reduces the ability of domestic consumers to buy foreign goods.
Asian leaders now look on with trepidation about what a Trump presidency may mean for currencies and whether the incoming administration will add a currency war to its clear intentions to begin a trade war.
VIDEO - How Australia will be impacted by a trade war between the US and China
As the global reserve currency, the US dollar dictates the price of all other currencies and commodities and US government debt, considered to be the world's safest and the benchmark for global interest rates, is the biggest foreign investment for many nations.
Japan holds around $US1 trillion ($1.5 trillion) in US government bonds and China, despite selling down in recent years, retains around $US770 billion worth of US government debt.
Stomping interest rates will reduce the value of those bonds and will have a serious impact on international balance sheets and the national wealth of the countries that own them.
Despite the tepid assurances this week that he won't try to replace Powell, the incoming president has made no secret of the fact that he should have the ultimate say over interest rates.
"The Federal Reserve is a very interesting thing and it's sort of gotten it wrong a lot," Trump said in August.
"I feel the president should have at least say in there, yeah. I feel that strongly. I think that, in my case, I made a lot of money. I was very successful. And I think I have a better instinct than, in many cases, people that would be on the Federal Reserve or the chairman."
So she's the one that had a big hand in re-districting dems to death all over the country with gerrymandering the population. She-they knew for a while that they took control of the electoral count. Maybe that was shittypant's secret. They already knew dems couldn't out vote them no matter what. But that's okay, rfk jr will make all vaccines illegal and kill us that way too.
Everyone Trump Has Picked to Join His Second Administration
"Let's be faithful to USA - 5 things you need to know about Susie Wiles "Cost of living/ immigration -- Voters Were Fed Up Over Immigration. They Voted for Trump.""
The president-elect isn't wasting time tapping loyalists to staff the White House and his Cabinet
By Ryan Bort, Nikki McCann Ramirez November 12, 2024
Lee Zeldin, Kristi Noem, and Marco Rubio Adam J. Dewey/Anadolu/Getty Images; KAMIL KRZACZYNSKI/AFP/Getty Images; Patrick T. Fallon/AFP/Getty Images
Donald Trump may have been caught off guard when he won the 2016 presidential election, but he and his team have hit the ground running this time around. The former and future president has already made several key administration appointments and nominations, staffing the White House and his Cabinet with loyalists prepared to stop at nothing to carry out his agenda. Some of Trump’s picks require Senate confirmation, but it’s unlikely any of the president-elect’s choices will be shot down given that the GOP now has a firm grasp on control of the chamber.
Here’s a running guide to all of the MAGA diehards Trump is giving the keys to America’s immigration enforcement, environmental protection, homeland security, foreign policy, national security, and more.
Susie Wiles: White House Chief of Staff Jabin Botsford/The Washington Post/Getty Images
Trump campaign co-chair Susie Wiles has been rewarded for her success reelecting Trump with one of the most powerful positions in the executive branch: White House chief of staff.
Wiles, an effective if publicity shy political operative, is the first woman to ever hold the position. She will have a direct hand in shaping the tone and makeup of Trump’s second administration, and a direct line of communication to the man she helped elect. Trump has an abysmal track record .. https://apnews.com/article/donald-trump-susie-wiles-chief-of-staff-white-house-0ee52de915484312128ac1cac59d78af .. retaining his chiefs of staff, however, especially those who seek to curb his impulsiveness. Wiles may find herself walking a shaky tightrope to keep his favor, but she’s in his good graces for now.
Tom Homan: Border Czar BRENDAN SMIALOWSKI/AFP/Getty Images
Homan will be “in charge of our Nation’s Borders (‘The Border Czar’)” and be “in charge of all Deportation of Illegal Aliens back to their Country of Origin,” Trump wrote in a Truth Social post announcing the news. Homan previously served as the head of Immigration and Customs Enforcement’s deportation enforcement under President Barack Obama — where he set records for undocumented immigrant removals — and as acting director of ICE under Trump. Homan has suggested family separation will not be an issue in Trump’s second term — as the administration can simply deport entire families together .. https://www.cbsnews.com/news/trump-mass-deportation-plan-cost-consequences-60-minutes-transcript/ .
Elise Stefanik: U.N. Ambassador Michael A. McCoy/Getty Images
Stefanik, a U.S. House representative from New York, has been one of Trump’s most fervent supporters in Congress. She was rewarded for it when the president-elect announced her nomination for ambassador to the United Nations. “She will be an incredible Ambassador to the United Nations, delivering Peace through Strength and America First National Security policies!” Trump wrote.
Stefanik is also likely to put Israel first. She has been a staunch advocate for the nation as it has bombarded Gaza, leading the congressional crusade against university presidents who she feels didn’t do enough to crack down on pro-Palestine protests, and attacking the U.N. as “antisemitic” for not being more deferential to Israel as it laid waste to Gaza.
Stephen Miller: White House Deputy Chief of Staff for Policy Tom Williams/CQ-Roll Call, Inc/Getty Images
Stephen Miller was a key Trump adviser during the president-elect’s first term in office, especially on immigration. He spent his four-year interim from the White House crafting plans to further carry out the draconian immigration policy, and he has become a key member of the Trump braintrust building out legal and logistical strategies .. https://www.rollingstone.com/politics/politics-features/trump-archaic-law-mass-deportations-1234941671/ .. to round up and deport millions of undocumented migrants with little to no due process.
His appointment to a major policy role in Trump’s second term is a clear affirmation of the priority the incoming administration is placing on its immigration platform. Miller’s influence will extend far beyond immigration policy alone.
Lee Zeldin: Environmental Protection Agency Administrator Tom Williams/CQ-Roll Call, Inc/Getty Images
Zeldin’s priority will not be the preservation and protection of America’s natural habitats, but “unleashing America’s energy potential,” as Trump often puts it, through deregulation, increased fossil fuel reliance, and a decisive move away from green-energy initiatives.
In a statement announcing Zeldin’s appointment, Trump wrote that he “will ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American businesses, while at the same time maintaining the highest environmental standards.”
Marco Rubio: Secretary of State Leon Neal/Getty Images
Trump and Rubio famously feuded during the 2016 Republican primary, with the Florida senator mocking Trump’s hand size and Trump responding on the debate stage by defending his manhood. Rubio, like many other former Trump critics in Congress, has since come around, and is one among the most MAGA members of the Senate. Trump is now expected to nominate him as Secretary of State.
Rubio is a China hawk who sits on the Senate Foreign Relations Committee and Senate Intelligence Committee. He’s also been very clear about his belief that Israel should have free rein to respond to whatever it deems necessary to take out Hamas, emphatically telling protesters that he doesn’t want a cease-fire, that he wants Israel to “destroy every element of Hamas they can get their hands on,” and that Hamas is solely to blame for deaths of the civilians Israel has killed in Gaza. Rubio also wrote a letter to current Secretary of State Antony Blinken asking him to “eradicate” anyone who “endorses” Hamas from the United States.
Kristi Noem: Secretary of Homeland Security Tom Brenner/The Washington Post/Getty Images
Trump has reportedly tapped puppy-killing .. https://www.rollingstone.com/politics/politics-news/kristi-noem-shoots-puppy-she-hated-book-1235011230/ .. South Dakota Gov. Kristi Noem to head the Department of Homeland Security, the agency tasked with carrying out Trump’s extremist immigration agenda. Pending Senate confirmation, Noem will be in charge of everything from Immigrations and Customs Enforcement (ICE), Customs and Border Protection (CBP,) and the Federal Emergency Management Agency (FEMA), to the Secret Service, the Coast Guard, and the TSA. Her key qualifications seem to be an undying loyalty to Trump and staunch support for his immigration agenda.
Noem was reportedly on the short list for Trump’s vice presidential pick, but lost favor after bragging in her memoir about shooting and killing a pet puppy she found unmanageable. Maybe it was the inherent cruelty, maybe it was her justification that the puppy execution showed how she doesn’t “shy away from tough challenges” — but something about Noem led Trump to select her to oversee one of the dirtiest jobs in Trump’s presidential Cabinet.
Mike Waltz: National Security Adviser Leon Neal/Getty Images
National security adviser under Trump hasn’t exactly been the most stable job. Michael Flynn was his first one, but he resigned after less than a month after admitting he lied about his foreign communications before Trump took office. Then came H.R. McMaster, whom Trump ultimately fired and has since trashed. Then came John Bolton. Ditto. Robert O’Brien, Trump’s final national security adviser, was rumored to be in contention to land the role to start of Trump’s second term, but he is reportedly giving the gig to Rep. Mike Waltz (R-Fla.).
Waltz is a Trump loyalist and veteran who serves on the House Armed Services Committee, House Foreign Affairs Committee, and House Intelligence Committee. He’s known as a China and Iran hawk, voted against military support for Ukraine, and is an ardent supporter of Israel. The New York Times also points out .. https://www.nytimes.com/2024/11/11/us/politics/trump-michael-waltz-national-security-adviser.html .. that he’s become a fixture on Fox News discussing foreign policy, which may be his most important qualification for Trump.
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