Analysis: Trump is unlikely to fire Powell, but may still "manipulate" the Fed

Mars Finance News: On April 21, Francesco Bianchi, an economics professor at Johns Hopkins University, stated that Trump is unlikely to act on his threat to fire Federal Reserve Chairman Powell, but the pressure from his public actions to push for rate cuts will still influence the Fed's decision-making. After Trump's threat last week, the Federal Reserve now knows it will be blamed by the public if an economic recession occurs. Following Powell's clear statement that he is not eager to cut rates and Trump's response that he might fire Powell, the stock market experienced a significant decline due to the risk of weakening the Fed's independence. Francesco Bianchi believes Trump will not follow through on his threat. The main reason is that Powell's term will end in about a year. The chaos caused by such an action would far outweigh any potential benefits. Replacing Powell would lead to financial market expectations of further interest rate increases. (Jinshi)