White House advisor Hassett stated that if Powell remains as a Federal Reserve Governor after his term as Fed Chair expires in May, it could influence President Trump’s push for interest rate cuts. Powell should leave the Federal Reserve. Trump mentioned that he does not care whether Powell stays on as a Fed Governor after his term ends, but he wants to ensure Kevin Warsh becomes the next Fed Chair.
On Thursday, Kevin Hassett, a White House advisor, expressed disappointment with Powell's remarks. If Powell remains on the Federal Reserve Board as a governor after his term as chairman ends in May, it could hinder President Trump's advocacy for interest rate cuts. It is time for Powell to leave the Federal Reserve.
Hassett also noted that Kevin Warsh, the nominee for Federal Reserve Chair, did not guarantee compliance with Trump’s demand for rate cuts and would make decisions based on data.
Hassett stated that it would be a mistake for either the Federal Reserve or the European Central Bank to raise interest rates. Central bankers in the U.S. and Europe should postpone tightening monetary policy out of concern that rising energy costs might trigger inflation. Following the reopening of the Strait of Hormuz, the influx of oil supply into the market will be 'unprecedented.' The futures market anticipates a significant drop in oil prices.
On the same day, Trump stated that he does not care whether Powell stays on as a Fed governor after his term as chairman expires; he only wants to ensure that Kevin Warsh becomes the next Federal Reserve Chair.
On Wednesday this week, following the April FOMC meeting, Federal Reserve Chair Powell announced during a press conference that upon the conclusion of his chairmanship on May 15, he will remain as a Fed governor and will not leave the Federal Reserve Board until the investigation against him has fully concluded. Powell also pledged not to obstruct the new chair’s administration, vowing never to act as a 'shadow chair,' and promised to maintain a low profile while supporting the new chair during his tenure as a governor.
News on the same Thursday indicated that the U.S. Department of Justice is preparing to appeal the ruling on the Federal Reserve subpoena:
The U.S. Department of Justice plans to appeal a federal judge's ruling, which had blocked prosecutors from using a grand jury subpoena during their investigation into the cost overruns of the Federal Reserve’s construction projects.
Despite the closure of the investigations into the Federal Reserve and Chairman Powell, the Department of Justice will still seek an appeal. U.S. prosecutor Jeanine Pirro stated that the appeal is necessary because if the ruling remains in effect, it would weaken a key investigative tool for prosecutors. U.S. heavyweight Senator Thom Tillis noted that the aim of the appeal is to challenge the legal basis of the ruling, not to reopen the investigation.
Editor/Rocky