The nation’s biggest bankers are speaking out to defend the independence of the Federal Reserve while President Trump openly discusses ousting Chair Jerome Powell https://t.co/P5iQu53BEM ...

Hope you'll stick around for one more minute. We want to get your reaction to some breaking news that we're getting out of Washington and our Megan Cassella. Hey Megan. Hey Carl.We can report now that the White House says the president is considering firing Federal Reserve Chairman Jerome Powell. That's according to a senior White House official saying the president asked lawmakers meeting in the Oval Office late yesterday how they felt about firing the Fed chair. The lawmakers that were in the room, 12 Rep ...

Federal Reserve & Monetary Policy - The market is awaiting the June jobs report, a key data point influencing the Federal Reserve's (Fed) next move, amid renewed pressure from President Trump to cut rates [1] - The discussion revolves around President Trump's criticism of Fed Chair Jay Powell and whether Powell has any leverage in the situation, such as stepping down as chair but remaining a governor [2] - Historical context reveals that presidential pressure on the Fed is not unique to Donald Trump, citing examples of Lyndon Johnson and Ronald Reagan [3][4] - The President's pressure is understood as political, driven by the belief that Fed rate cuts will lower consumer costs, although the Fed doesn't control the entire yield curve [5] - The jobs numbers will have a bigger impact on the next meeting in September than the President's comments [6] - The independence of the Fed is a key concern, particularly regarding the appointment of a potential "Trump lackey" who might infringe upon this independence [7][8] - The Federal Reserve is credited with keeping inflation at 1.7% and maintaining relatively good employment health [9][10] - Concerns exist that excessive accommodation by the Fed could lead to a significant inflation problem, similar to the Arthur Burns era [20][21] Market Reaction & Economic Indicators - The bond market is trading as if the next Fed chair will lower rates, despite reasons for bond yields to be higher, such as a weaker currency and a rising deficit [16][17] - Warrant data, indicating significant layoffs and changes in employment, is up, suggesting potential weakness in the employment picture [18] - While the unemployment rate is around 4.5%, it's still historically low [18]