Trump’s Fed Attacks Have Significant Market Impact, Goldman’s Hatzius Says
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President Donald Trump’s threats to fire Federal Reserve Chair Jerome Powell have had a significant impact on financial markets, Goldman Sachs Chief Economist Jan Hatzius said.
“We have seen significant tightening in financial conditions, with increases in bond yields and declines in equity prices, and also weakness in the dollar,” Hatzius said Tuesday on Bloomberg TV. “But net-net, it has tightened our financial conditions index whenever that has come up, and so I think that gives you sort of a foretaste of what would happen if we really did go down this road.”