Politics

White House Economic Adviser Claims Fed Chief’s Job Is Safe

Kevin Hassett also said that President Donald Trump was happy with Treasury Secretary Steven Mnuchin

Image Credit: Alex Wong/Staff/Getty Images / Mark Wilson/Staff/Getty Images

U.S. Federal Reserve Chairman Jerome Powell (shown above left) won’t be fired despite earlier reports he could be amid recent stock market troubles, said a top administration official, White House economic adviser Kevin Hassett (above right), on Wednesday.

President Donald Trump had attacked Powell earlier in the week as the only problem the economy faces.

Those remarks came amid the stock market’s suffering a significant decline in prices. But, fortunately, the stock market made a major comeback later in the day Wednesday.

Hassett later told reporters Powell wasn’t at risk of being fired.

“Yes, of course, 100 percent,” Hassett told reporters when asked whether his job was safe, Reuters noted.

Investors have closely followed news that the president had privately discussed firing Powell.

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His gradual interest rate hikes had reportedly led to tension between him and the president.

Trump blamed the stock market troubles on the gradual increase of interest rates, The Hill reported.

Stock prices have plunged in recent weeks, which had created concerns about the economy. The S&P 500 index this month was on pace for its biggest percentage decline since the Great Depression. But the stock market was able to make a huge comeback Wednesday, with the Dow Jones industrial average jumping by over 1,000 points at about five percent.

The S&P 500 at the same time jumped by about five percent as well, closing near 2,468, reported MarketWatch. The Nasdaq Composite increased by 361 points at 5.8 percent to finish around 6,554.

The percentage increase for all three major indexes was the strongest since March 2009.

Related: CNN’s Don Lemon Attacks President Trump for Taking Credit for Booming Economy

“The only problem our economy has is the Fed,” Trump tweeted a few days ago.

“They don’t have a feel for the market, they don’t understand necessary trade wars or strong dollars or even Democrat shutdowns over borders,” he added at the time. “The Fed is like a powerful golfer who can’t score because he has no touch — he can’t putt!”

Hassett also said the president was happy with Treasury Secretary Steven Mnuchin, who reportedly faced his own tensions with the president.

Mnuchin has held discussions with top bankers this week and convened a call with a team of regulators who are working to keep financial markets running without problems.

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“I am highly confident that the president is very happy with Secretary Mnuchin,” Hassett told Fox Business host Charles Payne. “I’ve met with them together in the Oval [Office] many, many times and they have a very collegial and productive working relationship.”

Mnuchin said after meeting with the chief executives of six of the largest banks on Sunday that each had “ample liquidity available for lending.”

Trump has reportedly been frustrated with his Treasury secretary when the stock market wasn’t doing great in recent weeks. He has been working to calm the markets over that time.

Mnuchin said after meeting with the chief executives of six of the largest banks on Sunday that each had “ample liquidity available for lending.”

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This article has been updated. 

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