• June 25, 2024

Jerome Powell Says “Won’t Resign”

Chairman of Federal Reserve, Jerome Powell has mentioned taking certain moves to reinsure the current condition of the financial market. He also said henceforth the Central Bank of US would consider before increasing the rates again. In a statement, he made sure to talk about the issue of his resignation. He said he would certainly not resign even if US President Trump asks him to. After his statement at a meeting arranged by American Economic Association, there was an increase in stocks of US.

NASDAQ has been successful in rising 4.3%. Dow and S&P also gained over 3% each. The gains have been quite a relief after the diminishing points just a day earlier. However, the uncertainty of the market still persists. Investors have been very worried in past few months regarding the increasing interest rates by Federal Reserve while there are prominent signs of slowdown in the global economy. Trump had highly criticized the increasing rates by Federal Reserve. He was definitely unhappy for the constant decrease in stock market and accused the Fed.  The move would increase the price of borrowing and put the slow economic growth under terrible risk. There has been no in person meetings between Trump and Powell, but the latter have strictly said that in no way would he be resigning.

Powell has further showed his confidence in households and businesses. He said that Fed has not been rash in taking decisions, they were aware of the strong data in the economy and everyone can manage the high cost. According to a job report, employers in US have summed up over 300,000 jobs in the last month. Despite the diminishing stocks in the market due to trade conflicts and economic slowdown worldwide, market seems to remain well planned with the data.

Lastly, Powell said that they would be keeping a constant track of the market condition and accordingly changes would be made.

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