Council of Economic Advisers Chair: Federal Reserve Chairman's Job Is Safe

Council of Economic Advisers Chair: Federal Reserve Chairman's Job Is Safe

Council of Economic Advisers Chair: Federal Reserve Chairman's Job Is Safe

Trump shifted his criticism again to the Fed, saying it "raised the interest rates too fast, that's my opinion". And he's ordered his staff to find a legal rationale for removing Powell.

CNN has previously reported that Trump was frustrated with Mnuchin because he pushed for Federal Reserve Chairman Jerome Powell's appointment.

All modern economies depend on public confidence that politicians can't lower interest rates to serve their own purposes - such as getting short-term growth at the expense of long-term inflation and instability.

Hassett also said that US banks aren't facing a liquidity crisis.

President Donald Trump on Christmas Day hailed US companies as "the greatest in the world", adding that they present a "tremendous opportunity to buy" for investors.

"Yes, I do", Trump said Tuesday when asked whether he had confidence in Mnuchin.

Investors said his move to convene a call with the president's Working Group on Financial Markets, known as the "Plunge Protection team", may have weighed on sentiment. We have companies, the greatest in the world, and they're doing really well.

Trump said he remained confident in American firms, and indicated investors should not fear the markets. "I think the increasing of interest rates and the shrinking of the Fed portfolio is an absolute bad thing to do at this time especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so, "' Powell tweeted.

USA stocks edged up on Wednesday, with the S&P 500 (.SPX) up 0.2 percent in late morning trading.

Mnuchin on Saturday denied that Trump planned to remove the Fed chairman, saying on Twitter that Trump told him in a conversation that he "never suggested firing" Powell.

"This is nonsense", they said.

The treasury stated: "The CEOs confirmed that they have ample liquidity available for lending", adding that Mnuchin "also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly".

Earlier this month the Fed followed through on expectations it would hike interest rates by 0.25 to a range of 2.25 per cent 2.5 per cent - the highest level in a decade.

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