Economy
18:42, 23-Dec-2018
U.S. treasury secretary denies rumors Trump may fire central bank chief
Updated
18:07, 26-Dec-2018
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U.S. Treasury Secretary Steven Mnuchin denied Saturday that President Donald Trump was considering firing the country's central bank chief, after the latest rate hike sparked such rumors.
Mnuchin tweeted that Trump told him in a conversation that he "never suggested firing" Federal Reserve Chairman Jerome Powell. "Nor do I believe I have the right to do so," Mnuchin quoted Trump as saying.
According to Mnuchin, however, Trump said "I totally disagree with the Fed policy," including increasing the interest rate, with the fourth consecutive one announced Wednesday by the Federal Open Market Committee, the Fed's decision-making body.
The president said that the rate hike, as well as the shrinking of the Fed portfolio, "is an absolute terrible thing to do at this time," Mnuchin tweeted.
The treasury secretary's clarification came amid reports that Trump was weighing the option of ousting Powell because of his intensifying frustration with the central bank governor and the continuing stock market losses over the past several months.
According to the 1913 Federal Reserve Act based on which the Fed was created, the president appoints and can dismiss the Fed board of governors -- the chairman is one of seven -- as long as justification is given. Such a removal, however, has no precedence and will challenge the institution's independence.
Source(s): Xinhua News Agency