LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

The Optimist’s Guide to Airlines and Gold
By: Frank Holmes, US Funds

“Baghdad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools
By: Clint Siegner, Money Metals

Market Action Suggests Downside in Precious Metals
By: Jordan Roy-Byrne CMT, MFTA

Gold Looks Good & Silver Looks Great
By: Stewart Thomson, Graceland Updates

QE4ever Arrives in One Quantifiable Quantum Leap!
By: David Haggith

Precious Metals Update Video: Gold in a pause zone
By: Ira Epstein

The Dutch Central Bank Endorses The Gold Standard
By: Dave Kranzler

Inflation in the Offing?
By: Gary Tanashian, NFTRH

SWOT Analysis: Gold Sales in India Continue to Weaken
By: Frank Holmes, US Funds

Perspective is Everything - Gold
By: Rambus

 
Search

GoldSeek Web

 
Treasury Secretary Panics as Markets Melt Down and Trump Mulls Firing Fed Chair Powell


 -- Published: Monday, 24 December 2018 | Print  | Disqus 

Wall Street didn’t take well to the Federal Reserve’s latest rate hike and projection for two more to come in 2019.

Neither did the White House.

President Donald Trump slammed Fed chairman Jerome Powell yet again and reportedly asked advisors within his inner circle whether he has the legal authority to fire Powell.

It would be unprecedented for a President to fire a Fed chairman before his term is up. Over the weekend, Treasury Secretary Steven Mnuchin raced to quell the idea of ousting Powell. (But Mnuchin seems to have a personal stake in it, as he had recommended to Trump that he pick Powell to replace Janet Yellen.)

Mnuchin also convened over the weekend with big bank CEOs and the Administration’s secretive President’s Working Group on Capital Markets, also known as the “Plunge Protection Team.”

Crash

He took the unusual step of issuing a statement declaring the banking system has “ample liquidity.”

His attempt to preempt any concerns about the current health of the financial system may have only helped draw more attention to them. The Fed’s rate hikes have already put the stock market on the brink of a major cyclical crash.

Does the White House have the legal authority to remove Federal Reserve Board members? Apparently so. According to Section 10 of the Federal Reserve Act, “each [Board] member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.”

If the President finds “cause,” then he can remove Fed policymakers.

Of course, Trump would set off a political firestorm if he attempted to remove the Federal Reserve chairman. Right now, the White House is struggling to put out multiple existing fires threatening Trump’s agenda – from the Robert Mueller investigation, to Defense Secretary James Mattis’ sudden resignation in protest, to the partial government shutdown now in effect.

Early last week, it appeared that Trump was preparing to sign a stopgap bill to keep the government open – without funding for a border wall. But after his base revolted at the prospect of another capitulation on his cornerstone campaign promise – and a complete squandering of the last opportunity to get anything done while Republicans still control both chambers of Congress – Trump changed his mind.

Government Shutdown

Is the current government shutdown anything more than political theater? History suggests shutdowns rarely achieve anything good for Republicans. They certainly never save taxpayers money (all government employees not reporting for work will still get full pay).

What do government shutdowns mean for markets? Not much, usually.

Investor fear is priced in beforehand. But with so much now weighing on the stock market all at once, any additional bad news about the prospects for a resolution of the shutdown could trigger additional heavy selling.

To be sure, the unfolding mayhem reinforces the wisdom of having a meaningful allocation to gold and silver as we head into the New Year.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

 


| Digg This Article
 -- Published: Monday, 24 December 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.