US President Donald Trump increased his attacks on Federal Reserve chairman Jerome Powell on Monday, sparking a new market sell-off to begin the week's trading.
In a social media post, Mr Trump called on the Fed to issue “pre-emptive cuts” for the presumed weaker growth and higher inflation forecasts that economists generally believe to be a result of the trade war he started earlier this year.
Mr Trump also said costs were trending downwards, warning “there can be a slowing” of the economy unless Mr Powell – who the President called a "loser" – cuts interest rates.
The Fed is expected to keep interest rates steady at about 4.3 per cent when it meets next month, according to CME Group data.
The US market, meanwhile, already on edge, resumed the sell-off that began after Mr Trump announced a series of tariffs.
The Dow Jones Industrial Average fell 971 points – or 2.48 per cent – while the S&P 500 and Nasdaq Composite fell 2.36 per cent and 2.55 per cent, respectively.
The US dollar index, which measures the greenback against a basket of foreign currencies, dipped as low as 97.72, its lowest in three years.
Mr Trump escalated his attacks on the Fed chairman last week after Mr Powell suggested the central bank was not hurrying to cut rates amid heightened uncertainty over the effects of the tariffs. Mr Powell added the larger-than-expected tariffs could force the Fed to choose between inflation or weaker growth.
“If I want him out, he’ll be out of there real fast, believe me,” Mr Trump said on the possibility of firing the Fed chairman last week. In a separate social media post, he said Mr Powell's “termination cannot come fast enough".
Those remarks sparked fears that Mr Trump could undermine the independence of the Fed, which makes its monetary policy decisions without political interference.
Removing a Fed chair over a policy dispute would probably cause more market turmoil as investor confidence rests on the central bank's ability to make its decisions independently rather than for short-term political gains.
Those fears have also bled into the bond market, with the yield on the 10-year Treasury climbing 8 basis points at 4.409 per cent.
Whether a president can fire a Fed chair remains an open question, and one that has never been tested. Mr Powell has remained adamant that the President does not have the authority to fire him. He also said he would not leave if asked.
White House economic adviser Kevin Hassett on Friday said the Trump administration was studying whether firing Mr Powell was an option.
“That would undermine the credibility of the Fed,” Chicago Fed president Austan Goolsbee told CBS on Sunday.
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
The national orchestra
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Four stars
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Read part two: how climate change drove the race for an alternative
Read part one: how cars came to the UAE
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RESULT
Bayern Munich 0 AC Milan 4
Milan: Kessie (14'), Cutrone (25', 43'), Calhanoglu (85')
Transgender report
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
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Brief scores:
Day 2
England: 277 & 19-0
West Indies: 154
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Mohammed bin Zayed Majlis
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COMPANY%20PROFILE
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North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
THE SPECS
Engine: 4.4-litre V8
Transmission: eight-speed automatic
Power: 523hp
Torque: 750Nm
Price: Dh469,000
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
The five pillars of Islam
1.
2.
3.
4.
5.
Tomorrow 2021
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
Plastic tipping point
Tomorrow 2021
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About Tenderd
Started: May 2018
Founder: Arjun Mohan
Based: Dubai
Size: 23 employees
Funding: Raised $5.8m in a seed fund round in December 2018. Backers include Y Combinator, Beco Capital, Venturesouq, Paul Graham, Peter Thiel, Paul Buchheit, Justin Mateen, Matt Mickiewicz, SOMA, Dynamo and Global Founders Capital
The national orchestra
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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
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Copa del Rey
Semi-final, first leg
Barcelona 1 (Malcom 57')
Real Madrid (Vazquez 6')
Second leg, February 27
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
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States of Passion by Nihad Sirees,
Pushkin Press
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
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Explained
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
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