US President Donald Trump continues to pressure Fed Chair Jerome Powell to cut interest rates, while also calling for Powell's resignation. Trump has already begun discussions on Powell's replacement as his term approaches. At this point, while Powell's resignation continues to be a hot topic in the market, new statements came from famous economist Mohammed El-Erian, who frequently criticizes the FED and Powell regarding inflation. El-Erian, who thinks that the FED and Powell are responsible for inflation reaching these levels, said in his latest statement that Powell should resign. El-Erian, who shared a long post from his X account, said that Powell's resignation was the most logical solution. “If Chairman Powell's goal is to preserve the Fed's operational autonomy (which I see as vital), then he should resign. I know this is not the general view that supports him remaining in office until the end of his term in May. Nor is it an impossible first step. Still, it's better than what's happening now—the growing and widening threats to the Fed's independence—and will undoubtedly increase if he remains in office. As for market reaction, most of the frequently mentioned candidates to replace Chairman Powell are capable of calming potential market tensions. If Powell remains in office, the Fed's independence will be compromised. Therefore, I believe he should resign. *This is not investment advice. Continue Reading: Legendary Economist El-Erian Speaks Out on Fed Chair Jerome Powell's Resignation! "This Is the Most Logical Solution!"
