ECONOMY/FEDERAL RESERVE/TRUMP AS PRESIDENT: “The Federal Reserve on Wednesday [6-20-19] held interest rates steady but opened the door to a possible cut this year amid fears of a slowing economy, in a move unlikely to calm President Donald Trump days after he suggested he might try to demote Fed Chairman Jerome Powell. The Fed’s rate-setting committee said in its post-meeting statement that it still thinks ‘the most likely outcomes’ for the U.S. economy this year are a sustained expansion, a strong labor market and little inflation…In particular, Powell and other Fed officials have acknowledged worries surrounding the scope and magnitude of the president’s battles with most of the country’s largest trading partners, which could chill business confidence and hamper the economy. The statement comes just a day after news broke that White House lawyers earlier this year explored the possibility that Trump could demote Powell, his own appointee, from his role as chairman. The Fed chief cannot be removed entirely from the central bank’s board unless it is ‘for cause.’”
–Victoria Guida, “Fed keeps rates steady as Powell brushes off Trump threats,” Politico, June 19, 2019 5:28 pm