NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Federal Reserve Chairman Jerome Powell said Thursday that the president does not have the legal power to fire or demote him. Creighton University economist Ernie Goss spoke about economists surprise to see Powell answer that question directly.
"A lot of investors and economists expect him to sort of stay out of that political fray," Goss said. "A battle between the Federal Reserve Chairman Powell and President Trump would not be good for markets out there right now."
Goss anticipates another rate cut in December to follow the one that happened on Thursday.
"When the federal government runs a deficit and they continue to run deficits of two trillion dollars, then you tack on that an extension of the tax cuts, you're talking upward pressure on inflation," Goss said.
Another potential inflation problem could come if President-elect Trump follows through on the tariffs he has said he will put on.
"Most economists are opposed to just a blanket increase in tariffs out there," Goss said. That would put upward pressure on prices, it would be if it's not a negotiating strategy and you implement those you're going to see Retaliation and retaliation would not be good for the agricultural sector."
According to Reuters, Fed chairs and vice chairs are appointed for four-year terms that run concurrently with their governorships, and typically do not stay on as governor if not re-appointed to their leadership role.