Link Securities | As reported by various agencies (Bloomberg, Reuters), the US president’s economic adviser, Kevin Hassett, indicated last Friday that the Trump administration was still considering whether to fire US Federal Reserve Chairman Jerome Powell. Hassett accused Powell of playing politics from his post, while US President Donald Trump, for his part, indicated that Powell did not know what he was doing, and again advocated interest rate cuts over the weekend.
On the same issue, Chicago Fed President Austan Goolsbee argued that political interference could undermine the Fed’s credibility. At the same time, a member of the Senate Banking Committee, Kennedy (R-LA) said he does not believe that any US president has the right to fire a Fed chairman. It should be remembered that Powell’s term expires in May 2026, and that current precedent holds that the country’s presidents can only fire the heads of independent agencies for very serious causes.
