US President Donald Trump continues to pressure production chair Jerome Powell to cut interest rates, but he has also called for Powell to resign.
Trump has already begun debating Powell's alternatives as his terminology approaches.
At this point, Powell's resignation continues to be a hot topic in the market, but the new statement comes from Mohammed El Elian, a well-known economist who frequently criticizes the Fed and Powell for inflation.
El Elian, who believes the Fed and Powell are responsible for the inflation that will reach these levels, said in his latest statement that Powell should resign.
Ellian, who shared a lengthy post from his X account, said Powell's resignation was the most logical solution.
“If Chairman Powell's goal is to maintain the Fed's operational autonomy (which I think is important), he should resign.
I know this is not a general view in favour of him continuing to take office until the end of his term in May.
It's also not an impossible first step. Still, it is better than what is happening now: the growing and growing threat to the Fed's independence, and will definitely increase if he is in office.
When it comes to market reactions, most frequently mentioned candidates to replace Chair Powell can calm potential market tensions. If Powell is in office, the Fed's independence will be compromised. Therefore, I believe he should resign.
*This is not investment advice.
