Powell orders a power outage in the media for Fed staff

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Jay Powell, the president of the US Federal Reserve, has banned any public appearance by a member of the Fed, Cockburn announced. Attendance at conferences has been canceled, all scheduled interviews have been discontinued and all comments, whether recorded or not, are prohibited.

This unprecedented action reflects two pressures. First, growing economic indicators suggest that the US is headed for a recession, with the Dow plunging 800 points on Wednesday. Second, relations with the White House have reached a new low. President Trump has based the success of his presidency on a strong economy and on his qualifications as a businessman who understands the economy. If a recession sets in, Trump thinks his reputation will be destroyed and his chances of reelection diminished.

This week, President Trump attacked Powell and the Fed, claiming that they were responsible for the slide in the stock market. Senior White House officials have stated that Trump has been engaged in regular and increasingly vitriolic tirades against Powell who, according to the president, should act to lower interest rates in order to boost l & # 39; economy.

"Other countries say THANK YOU for defeating Jay Powell and the Federal Reserve," says Trump. wrote on Twitter Wednesday. "Germany and many others play the game! INVERTED CRAZY YIELD CURVE! We should easily reap big profits and gains, but the Fed is stopping us. We will win! & # 39;

For its part, Powell estimates that the Fed, which cut interest rates by a quarter of a point at the end of last month, has little more to offer and even a reduction in interest rates would not help to combat growing international economic pressures. Powell is increasingly concerned about Trump's criticism, which he says shows he has little understanding of the economy or the role of the Fed.

This heated relationship between the independent Fed and a president who believes he must personally control all aspects of the government is unprecedented. Powell is determined to do nothing that can further nourish the struggle between an independent Fed and a controlling president.

Updated at 3:45 pm ET: According to the source of Cockburn, Powell's orders apply only to the Fed's Main Council, which has the vote and power. The Fed regional councils are largely independent, for those of you who are wondering why Jim Bullard of the St. Louis Fed was only doing business.

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