Powell: "I won't quit"

[jon-nyc]

I don’t know the particulars about removing a fed governor or chair but I can say it is very very independent.

The Federal Reserve Board of Governors (full disclosure, where one of my sisters works) is technically a Government Agency. But they don’t own the banks in the system, they just have an oversight role.

The individual banks are “owned”, but not really, by member banks from that region. But those banks have limited rights, can’t sell the stock, can’t set policy, etc.

Ultimately it’s accountable to congress who created it and could amend the legislation if it wanted to.

[jon-nyc]

I consulted for the NY Fed, the one regional branch with a special function that puts it above the others - it actually is a market participant that literally implements Fed policy by buying and selling bonds (“open market operations”, in the vernacular)

In my experience they behave as if they were a government agency when it’s convenient and they act like it’s private when it suits them.

[taiwan_girl]

INteresting. I think that the ability to stay pretty independent is, in the long term, very good for the US economy.

[George K]

@jon-nyc said in Powell: "I won't quit":

In my experience they behave as if they were a government agency when it’s convenient and they act like it’s private when it suits them.

Perfect.

[jon-nyc]

@taiwan_girl said in Powell: "I won't quit":

INteresting. I think that the ability to stay pretty independent is, in the long term, very good for the US economy.

It is. Looking historically non-independent central banks ending up serving the interest of the political career of the executive rather than the country. It’s inevitable.

[taiwan_girl]

President Trump, the great economic thinker that he is, gives his opinion on Chairman Powell. As always, he keeps is classy.

[89th]

Bloody hell another thread I started reading, not realizing the posts were from last year. And then I get excited because I thought @George-K was posting!

[Doctor Phibes]

Apparently we're all getting rich. I'm still waiting for that shit to trickle down.

[Jolly]

Work harder.

[Doctor Phibes]

@Jolly said in Powell: "I won't quit":

Work harder.

Fuck off, I've been here since 6am.

[Jolly]

Work harder. I've already planted two rows of peas.

[89th]

Now it's time for some peas and quiet.

[Jolly]

Nah, I cleaned the A/C fins, did some plant watering and push-mowed the dog's yard. Gonna go mow on the rider for about an hour, then I've got other stuff to do.

[jon-nyc]

Do you think he’ll try to fire Powell?

Or is he just setting him up to be blamed for the likely recession that Trump and Trump alone and nobody else but Trump is bringing on?

[taiwan_girl]

Can he fire him? I thought it was not possible.

[89th]

Whether he fires Powell or later replaces him (next year?) with a Hulk Hogan type person when his term is up, I am (in a slightly tin-foil hat way) concerned it would lead to a ripple effect that'll really put the US dollar at risk sending the world into a massive financial depression.

[jon-nyc]

@taiwan_girl said in Powell: "I won't quit":

Can he fire him? I thought it was not possible.

Under the law it isn’t but he may try to test that in the courts under the ‘unitary executive’ theory.

[taiwan_girl]

President Donald Trump said Tuesday he has no plans to fire Federal Reserve Chair Jerome Powell, just days after his statement that he would like to terminate the head of the U.S. central bank caused a stock market selloff.

https://apnews.com/article/federal-reserve-trump-jerome-powel-4710172f1fd4d6493769ac0b81703c01

Do we have a "whiplash" emoji? LOL. Was he lying then or is lying now?

[jon-nyc]

Yes.

[jon-nyc]

Seriously he’s lying now. He wants to fire him but he can’t (most likely) and if he did the dollar would go full Weimar.