Last hour | El-erian breaks with Wall Street and says that Powell must resign to save the fed
Last hour | El-erian breaks with Wall Street and says that Powell must resign to save the fed
Mohamed El-Erian, president of Queen's College at the University of Cambridge and Economic Chief Advisor of Allianz, has surprised the markets by publicly requesting the voluntary resignation of Jerome Powell as president of the Federal Reserve. According to El-erian, renouncing would be the only way to preserve the operational independence of the Central Bank before the growing political pressure.
In his message, El-Erian warns that the attacks of the Trump administration, added to the criticisms of the Treasury Secretary, Scott Besent, about the “mission diversion” of the Fed, are weakening Powell's institutional authority. Despite not considering its resignation as the “best scenario”, he insists that he is preferable to the risk of credibility erosion.
The tension between the White House and the Federal Reserve returns to the forefront, with direct implications in the monetary stability of the US and in the global perception of independence of the most influential central bank in the world.
