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Jerome Powell

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Warsh’s Quiet Fed Could Trigger Market Volatility and Higher Rates
business18 days ago

Warsh’s Quiet Fed Could Trigger Market Volatility and Higher Rates

The piece outlines Kevin Warsh’s push for dialing back the Fed’s forward guidance and transparency, arguing markets should rely more on data than central-bank signaling. If adopted, this approach could heighten market volatility and push rates higher as investors adjust without explicit Fed instructions, contrasting with Greenspan-era communication and Powell’s post-meeting guidance. Economists warn it could backfire during crises and shift influence within the Fed, depending on how quickly and where such a shift is implemented, including potential changes to quarterly projections and press conferences.

via AP News|
#business#federal-reserve#financial-markets
Judge keeps Pirro-Fed probe losses on the books, won’t vacate ruling
politics29 days ago

Judge keeps Pirro-Fed probe losses on the books, won’t vacate ruling

A Washington, D.C. federal judge refused to vacate his prior rulings against Prosecutors’ attempts to subpoena the Federal Reserve in the Pirro-led inquiry into Fed cost overruns, keeping the government’s losses on the record as Pirro’s probe was dropped under political pressure. The judge criticized the effort as potentially harassing Powell, and noted the public value of the record; Powell’s successor, Warsh, was later confirmed to chair the Fed’s rate-setting committee.

via CNBC|
#boasberg#federal-reserve#jerome-powell
politics1 month ago

Powell Defends Independent Institutions Against Political Pressure at JFK Award Ceremony

Former Fed chair Jerome Powell used his JFK Library Profile in Courage Award speech to defend the independence of the Fed and other democratic institutions, warning that political pressure on the central bank, courts, and universities would erode credibility; he noted his ongoing seat on the Fed board through 2028 after stepping down as chair.

via Politico|
#federal-reserve#institutional-independence#jerome-powell
Powell Warns Fed Is Under a Political 'Stress Test' on Independence
us-economy1 month ago

Powell Warns Fed Is Under a Political 'Stress Test' on Independence

Fed governor Jerome Powell said the central bank is undergoing a “stress test” that could erode its credibility and independence if administrations can punish officials for policy disagreements. He stressed that policy decisions should be based on economic analysis rather than politics, a point he made while accepting the JFK Profile in Courage Award amid ongoing tensions with President Trump over monetary policy. The episode raises concerns about the Fed’s insulation and the rule of law in preserving a stable economy.

via Financial Times|
#donald-trump#federal-reserve#independence
Powell warns Fed credibility is at risk amid political pressure
economy1 month ago

Powell warns Fed credibility is at risk amid political pressure

Jerome Powell warned that the Fed is undergoing a “stress test” and its independence from politics is essential to maintaining credibility. In remarks at the JFK Library after stepping down as Fed chair, he said any administration that tries to replace or remove Fed officials over policy would erode public trust, emphasizing decisions must be based on sound economic analysis rather than partisan aims. He also noted ongoing threats to Fed independence and commended the staff, while underscoring the broader duty to preserve democratic institutions.

via Axios|
#credibility#economy#federal-reserve
Trump pushes for a truly independent Fed chief under Warsh
business1 month ago

Trump pushes for a truly independent Fed chief under Warsh

President Trump urged incoming Fed chair Kevin Warsh to be 'totally independent' at a White House swearing‑in, aiming for a leader who won’t be swayed by outside voices. Critics warn Warsh could be a 'sock puppet' for Trump, while Warsh promises a reform‑oriented, independent Fed. The Fed has kept rates at 3.5%‑3.75%, with economists expecting them to stay there through 2026 amid inflation concerns and global tensions.

via BBC|
#business#fed-chair#independence
Trump nominees push for a finite Powell chair tenure at the Fed
us-politics-and-policy1 month ago

Trump nominees push for a finite Powell chair tenure at the Fed

Two Trump-nominated Fed officials object to keeping Powell as chair pro tempore for an unlimited duration, arguing the designation should be finite; Powell will remain chair until Kevin Warsh is sworn in after his Senate confirmation, marking a transitional, time-limited leadership. Miran voted against the designation and Bowman abstained; Warsh could be sworn in as soon as next week following a 54-45 Senate vote. The episode underscores tensions over Fed independence amid partisan pressure and continuing debate over the path of monetary policy and rate cuts.

via Financial Times|
#federal-reserve#jerome-powell#kevin-warsh
Warsh Takes the Wheel as Markets Bet the Fed Must Catch Up on Inflation
economy1 month ago

Warsh Takes the Wheel as Markets Bet the Fed Must Catch Up on Inflation

Bond traders believe inflation is running ahead of the Fed as Kevin Warsh takes over, suggesting policy may tilt toward tightening rather than further easing; Ed Yardeni argues the central bank may need to hike to curb inflation, while markets price in no rate cuts for the rest of the year amid inflation data showing a fresh uptick (CPI +3.8% year over year, wholesale +6%).

via CNBC|
#economy#ed-yardeni#fed
Pirro Signals Possible Revival of Powell Inquiry
politics2 months ago

Pirro Signals Possible Revival of Powell Inquiry

Jeanine Pirro, the U.S. attorney in Washington, signaled that prosecutors could resurrect their inquiry into Federal Reserve Chair Jerome Powell after dropping it when a federal judge blocked subpoenas; she said the probe could resume if an internal audit finds misconduct, even as Powell resists President Trump’s push to cut interest rates.

via The New York Times|
#department-of-justice#federal-reserve#grand-jury-subpoenas
Powell stays on Fed board as Trump pressure backfires
business2 months ago

Powell stays on Fed board as Trump pressure backfires

Powell announced he will remain on the Federal Reserve board to see the DoJ probe through to a transparent close, denying Trump an immediate seat and delaying any broad reshaping of the central bank. The Fed meanwhile kept rates unchanged in an 8-4 vote, with three regional presidents dissenting and signaling they won’t support resuming cuts, underscoring continued independence from political pressure. Powell’s decision—framed as ensuring transparency and finality of the investigation—reflects a broader pattern where presidential pressure on the Fed backfires, and it leaves a vacancy timeline that stretches to 2028 unless openings arise.

via The Washington Post|
#business#donald-trump#fed
Powell to Stay on Fed Board as Warsh Heads for Chair Amid Political Scrutiny
business2 months ago

Powell to Stay on Fed Board as Warsh Heads for Chair Amid Political Scrutiny

Powell will remain on the Federal Reserve Board after his chair term ends May 15 to oversee the ongoing probe into the Fed HQ renovations, while Kevin Warsh has cleared a Senate committee to become the next Fed chair and is expected to be sworn in before Powell’s term ends. Analysts say the transition is unusual and likely to be slow and consensus-driven, with potential shifts in how the Fed communicates and conducts policy, as the board’s balance could tilt if more Trump appointees move.

via PBS|
#business#fed-reserve#independence