Analysis: Trump is unlikely to fire Powell, but may still "manipulate" the Federal Reserve (FED).

BlockBeats news, on April 21, Francesco Bianchi, an economics professor at Johns Hopkins University, stated that Trump is unlikely to act on his threat to dismiss Federal Reserve Chairman Powell, but the pressure from his public actions aimed at pushing for interest rate cuts will still impact the Federal Reserve’s decision-making. After Trump issued his threat last week, the Federal Reserve now knows that if an economic recession occurs, it will be blamed by the public. The stock market fell sharply after Powell made it clear that he is not in a hurry to cut interest rates, and Trump responded by saying he might dismiss Powell, as the independence of the Federal Reserve faces the risk of weakening. Francesco Bianchi believes that Trump will not act on his threat, mainly because Powell’s term will likely end in about a year. The chaos caused by such an action would far outweigh the benefits. Replacing Powell would lead to financial markets expecting future interest rates to rise further. (Jin10)