Powell says he would reject any Trump request to resign

Powell says he would reject any Trump request to resign

The president also told the Washington Post he was "not even a little bit happy with my selection of Jay" - adding that the Fed was a bigger threat to the United States economy than his trade war with China.

There is "no pre-set path for policy and particularly with the muted inflation themes coming in we will be patient as we see how the economy evolves", Mr Powell said. "Powell is definitely trying to calm the markets".

"Markets are expressing concerns about global growth in particular and trade negotiations", Powell said.

The Dow Jones industrial average finished the day up 746 points or 3.3 per cent. Trump's attacks had become so intense that they had raised concerns that he might be considering firing Powell, a development which could send the market into a further tailspin.

Trump, who picked Powell to head the Fed starting last February, has been intensely and publically critical of Powell's Fed and Powell personally, accusing him of hurting the economy by raising rates.

The Fed chairman, responding to a question about what he would do if Trump asked him to step down, said he would not resign.

U.S. President Donald Trump has called the Fed's rate hikes a mistake and said he was not happy with Powell. Under the law that governs the Federal Reserve, a president can only remove a Fed chairman for cause.

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Josh Hazlewood (2-105) claimed two wickets, including the prized wicket of Kohli for 23 and opener Lokesh Rahul for nine. But he was dragged after the solitary over in favour of leg-spinner Marnus Labuschagne.

On Friday, Powell said, "We are always prepared to shift the stance of policy and to shift it significantly if necessary" to meet the goals of maximum employment and stable prices.

Although still low by historical standards, this latest hike put interest rates at the highest level in almost a decade.

A strong jobs report from the Bureau of Labor Statistics also likely quelled some fears that the U.S.is part of a broader economic deceleration.

"It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike".

Mr Powell said that he did not believe the Fed's removal of stimulus by shrinking holdings of Treasuries and mortgage-backed securities played a major role in the recent market turmoil.

The Fed's tightening cycle includes both rate hikes and the gradual shedding of its more than $4 trillion in assets.

USA media reported that Trump has been asking his advisers whether he could remove Powell from the post.

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