Economist Mohamed El-Erian broke ranks by suggesting Jerome Powell should resign as US Federal Reserve chairman, arguing that doing so would protect the American central bank's independence.
“By staying in office, is Powell defending independence or is he exposing it to greater threats?” he said, when asked by The National during a conference co-hosted by the World Bank and Centre for Global Development in Washington.
“What has happened over the past few weeks is that it has evolved from simply being attacks on him personally to being attacks on the institution.”
The White House has increased its pressure on the Fed to cut interest rates this year, with US President Donald Trump calling for low rates to help service the nation's debt, a concept known as fiscal dominance.
The Fed has paused its interest rate cuts after reducing policy in the final months of 2024, owing to uncertainty surrounding Mr Trump's tariffs policies. The extended pause has drawn the increasing ire of the White House.
The administration's latest line of attack has been on continuing renovations at the Fed's headquarters in Washington, where costs have risen to $2.5 billion. Trump administration officials have accused Mr Powell of grossly mismanaging the Fed, referring to the renovations, in what some regard as a pretext for ousting him.
Mr Powell has linked cost overruns to unforeseen conditions such as more asbestos than anticipated, contamination in the soil and a higher-than-expected water table.
“This tension between the President and the chairman of the Fed, if it continues, it will suck in more elements of the Fed,” Mr El-Erian said.
Tensions simmered last week following reports that Mr Trump indicated to Republicans in the House of Representatives that he was open to firing Mr Powell. While Mr Trump confirmed he brought up the idea, he said it was “highly unlikely” that he will sack the chairman.
The reports led to a brief spike in long-term yields and a weakening in the US dollar before they pared back some losses after Mr Trump's comments.
Those reported as possible replacements for the Fed chairman include National Economic Council head Kevin Hassett, former Fed governor Kevin Warsh, Treasury Secretary Scott Bessent and current Fed Governor Christopher Waller.
Mr El-Erian said the reported list of candidates would help calm market jitters.
“It's a very controversial argument, but it is underpinned by the need to maintain the critical importance of central banking,” he said.
Mr Trump continued his attacks on the Fed chairman on Tuesday. "I think he's done a bad job, but he's going to be out pretty soon anyway. In eight months, he'll be out," Mr Trump said before a meeting with Philippines President Ferdinand Marcos Jr at the White House.
It was not immediately clear why Mr Trump mentioned that timeline, which would come before Mr Powell's term as Fed chairman ends in May 2026. Mr Powell has said repeatedly that he intends to serve out his term and that Mr Trump has no legal authority to remove him.
In an interview with Fox Business earlier, Mr Bessent said Mr Powell should not resign.
“There’s nothing that tells me that he should step down right now,” he said. “His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.”
Mr Bessent on Monday had called for the “entire review” of the Federal Reserve system's non-monetary policy operations. He also called for a review of the Fed's building renovations.
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
UAE's role in anti-extremism recognised
General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.
He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.
"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.
He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.
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Champions parade (UAE timings)
7pm Gates open
8pm Deansgate stage showing starts
9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
UAE SQUAD
Omar Abdulrahman (Al Hilal), Ali Khaseif, Ali Mabkhout, Salem Rashed, Khalifa Al Hammadi, Khalfan Mubarak, Zayed Al Ameri, Mohammed Al Attas (Al Jazira), Khalid Essa, Ahmed Barman, Ryan Yaslam, Bandar Al Ahbabi (Al Ain), Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmin (Al Wasl), Adel Al Hosani, Ali Hassan Saleh, Majed Suroor (Sharjah), Ahmed Khalil, Walid Abbas, Majed Hassan, Ismail Al Hammadi (Shabab Al Ahli), Hassan Al Muharrami, Fahad Al Dhahani (Bani Yas), Mohammed Al Shaker (Ajman)
Scoreline
Arsenal 3
Aubameyang (28'), Welbeck (38', 81')
Red cards: El Neny (90' 3)
Southampton 2
Long (17'), Austin (73')
Red cards: Stephens (90' 2)
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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.
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
