Trump treats the Fed like a ‘pinata,’ but Powell won’t buckle

Federal Reserve Chairman Jerome Powell is unlikely to surrender to political pressure and “quit” despite the repeated attacks from President Donald Trump, CNBC’s Jim Cramer said Monday.

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Cramer said he expects Trump may have “got the wrong guy” when he chose Powell to lead the Fed. But the president shouldn’t expect Powell to respond to his criticisms now.

Trump nominated Powell in November 2017 to succeeded Janet Yellen as central bank chair. Powell has been a member of the Fed’s board of governors since 2012.

Cramer has also been critical of Powell since the Fed chairman’s remarks on Oct. 3 that the cost of borrowing money was a long way from so-called neutral, sparking concerns about possibly more aggressive Fed tightening.

But Cramer expressed renewed optimism about Powell’s leadership in March when the central bank indicated it would stall interest rate increases for the year.

“I thought that Jay was great,” Cramer said at the time. “It’s not easy to start. You make your rookie mistakes, you come back. He’s a great guy. Anyone who knows him knows that he course corrected.”

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