Jerome Powell agrees to resign as Fed Chair after sustained pressure
The post Jerome Powell agrees to resign as Fed Chair after sustained pressure appeared on BitcoinEthereumNews.com. Jerome Powell has agreed to step down as chair of the Federal Reserve following relentless attacks from President Trump and his inner circle, according to a statement released by Billy Pulte, the current head of the U.S. Federal Housing Finance Agency. The announcement hit financial news wires Friday evening, but traders aren’t convinced. Yields kept climbing, pushing to the day’s highs, showing that the market doesn’t believe Powell is truly finished… yet. Tensions had been building for at least a year now with these two. But on June 9, President Donald Trump demanded an immediate 300 basis point interest rate cut, which is economically senseless. Trump told reporters that such a cut would save the U.S. “$360 billion per point per year,” adding up to over $1.08 trillion annually. His math was based on a $36 trillion debt figure, but that included all federal debt, not just the $29 trillion held by the public, which is the only part that matters when calculating savings on interest payments. Trump pressures Powell using debt math and public shame Even if Powell had approved such a dramatic cut, refinancing the entire debt stockpile at once is flat-out impossible. Experts say only around 20% of that $29 trillion could be refinanced within a year, translating to $174 billion in realistic first-year savings. If 20% were refinanced each year under the 300-point rate reduction, interest savings over five years could hit $2.5 trillion. But none of that seemed to matter to Trump, who appeared more focused on undermining Powell than talking logistics. Standing on the White House lawn Friday morning before flying to Texas, Trump tore into the Fed chief: “I think he’s doing a terrible job,” he said. “I think we should be 3 points lower, interest rates. He’s costing our country a lot…
The post Jerome Powell agrees to resign as Fed Chair after sustained pressure appeared on BitcoinEthereumNews.com.
Jerome Powell has agreed to step down as chair of the Federal Reserve following relentless attacks from President Trump and his inner circle, according to a statement released by Billy Pulte, the current head of the U.S. Federal Housing Finance Agency. The announcement hit financial news wires Friday evening, but traders aren’t convinced. Yields kept climbing, pushing to the day’s highs, showing that the market doesn’t believe Powell is truly finished… yet. Tensions had been building for at least a year now with these two. But on June 9, President Donald Trump demanded an immediate 300 basis point interest rate cut, which is economically senseless. Trump told reporters that such a cut would save the U.S. “$360 billion per point per year,” adding up to over $1.08 trillion annually. His math was based on a $36 trillion debt figure, but that included all federal debt, not just the $29 trillion held by the public, which is the only part that matters when calculating savings on interest payments. Trump pressures Powell using debt math and public shame Even if Powell had approved such a dramatic cut, refinancing the entire debt stockpile at once is flat-out impossible. Experts say only around 20% of that $29 trillion could be refinanced within a year, translating to $174 billion in realistic first-year savings. If 20% were refinanced each year under the 300-point rate reduction, interest savings over five years could hit $2.5 trillion. But none of that seemed to matter to Trump, who appeared more focused on undermining Powell than talking logistics. Standing on the White House lawn Friday morning before flying to Texas, Trump tore into the Fed chief: “I think he’s doing a terrible job,” he said. “I think we should be 3 points lower, interest rates. He’s costing our country a lot…
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