Worst take ever. None of the short list would mollify markets if Powell is forced out. To be clear if he resigns he was forced out. Mohamed and I are old colleagues but this one is a bad take. Being a martyr and resigning for the moral and ethical cause would backfire. Perhaps the 3 left leaning Supreme Court justices should resign or all the Trump opposition. Or all institutions threatened by this administration. Nonsense
Mohamed A. El-Erian
Mohamed A. El-Erian22.7. klo 18.59
This morning, US government criticism of both Federal Reserve Chair Powell and the institution itself has broadened to include "mission creep" and the effectiveness of other officials. The developments of the last few days reinforce my view: If Chair Powell's objective is to safeguard the Fed's operational autonomy (which I deem vital), then he should resign. I recognize this isn't the consensus view, which favors him staying until the end of his tenure in May. Nor is it a first best, which is simply not attainable. Yet, it's better than what is playing out now – growing and broadening threats to Fed independence – and will undoubtedly increase should he remain in office. As to market reaction, most of the frequently mentioned candidates to replace Chair Powell would be able to calm any potential market jitters. #economy #federalreserve #markets
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