Days after replacing John Kelly, the president’s new chief of staff is already putting a personal stamp on the role.
.. But Mulvaney served as one of the president’s few companions in what Trump himself described as an empty and lonely White House over the holidays, working out of the West Wing when most White House aides were on vacation or furloughed as part of the partial shutdown Trump has precipitated... Thanks to changes the Trump administration negotiated to the NAFTA trade deal last year, Mulvaney explained, “American workers are going to do better, the government is going to do better, and you could make the argument that Mexico is paying for it in that fashion.“
Stock Market Rout Has Trump Fixated on Fed Chair Powell
President Trump has unabashedly hitched his political fortunes to a rising stock market. Now, with stock prices in retreat, he has become increasingly fixated on the idea that one man is to blame for the recent rout: Jerome H. Powell, chairman of the Federal Reserve.
After the Fed raised its benchmark interest rate on Wednesday, the fifth consecutive quarterly increase, Mr. Trump fretted to aides that Mr. Powell would “turn me into Hoover,” a reference to the man who was president in the early years of the Great Depression.
Mr. Trump has said choosing Mr. Powell for the Fed job last year was the worst mistake of his presidency, and he has asked aides whether he has the power to fire him.
But the volatile stock market, which just posted its worst week since 2008, is falling in part because of Mr. Trump’s own policies, including
- an escalating trade war with China,
- a shutdown of the federal government and
- the fading effects of the $1.5 trillion tax cut Mr. Trump ushered in at the end of 2017.
While the Fed’s rate increases have upset investors — who seem to have a darker view of economic growth than the central bank does — some analysts said Mr. Trump’s musings about the Fed would only exacerbate anxieties.
“If Powell gets terminated, what we’ve seen happen in the markets in the past few weeks will look like a walk in the park,” David Rosenberg, chief economist at Gluskin Sheff, said in an email on Sunday. “The dollar will go into a tailspin, and even confidence in the Treasury market will erode, especially among foreign creditors.”
Mr. Trump’s economic advisers scrambled over the weekend to reassure markets that Mr. Trump was not, in fact, planning to fire Mr. Powell. Treasury Secretary Steven Mnuchin tweeted what he said was a quote from Mr. Trump accepting that he did not even have the power to do so.
Mick Mulvaney, the incoming acting White House chief of staff, implied on Sunday that Mr. Trump had, in fact, inquired about removing Mr. Powell, saying on ABC’s “This Week” that the president “now realizes he does not have the authority.” But Mr. Mulvaney added that he had heard this from Mr. Mnuchin, not from Mr. Trump.
.. Mr. Mnuchin has worked in recent days to obtain Mr. Trump’s assurance that he would not remove Mr. Powell, according to an administration official who spoke on condition of anonymity. But that person cautioned that Mr. Trump could change his mind. The person noted Mr. Trump has a tendency to nurse grudges even when he temporarily sets a subject aside.
.. Some economists argue the Fed should continue its stimulus campaign to drive up employment and wages. They note that the Fed is about to undershoot its 2 percent inflation target for the seventh consecutive year, suggesting there is no need to step on the brakes.
.. In fact, during his presidential campaign, Mr. Trump accused the Fed of getting political, saying that the bank’s chairwoman at the time, Janet L. Yellen, should be “ashamed” for keeping interest rates low — a move he said was meant to help President Barack Obama.
But it is far from clear such a decision would serve the president’s purpose. A replacement for Mr. Powell would require Senate confirmation, and this person would join a policymaking committee that voted unanimously for the December rate increase. That committee also might be inclined, on future rate decisions, to demonstrate its independence from the president.
.. Mr. Trump also chose three of the other four members of the Fed’s board, all of whom joined Mr. Powell in voting for all four 2018 rate increases.In conversations with friends and advisers, Mr. Trump has acknowledged responsibility for the selection of Mr. Powell. He told Stephen Moore, an economist at the Heritage Foundation, that it was “one of the worst choices I’ve ever made,” according to Mr. Moore.Some of Mr. Trump’s economic advisers have encouraged him to remove Mr. Powell, arguing that the decision would reverse recent stock declines.Sarah Binder, a professor of political science at George Washington University, said presidents had often tried to shape Fed policy, but the current episode stood apart because Mr. Trump appeared to be acting against his own interest in a stable economy.
“I think what is the unusual part here is that it seems the president has created the crisis,” she said. “His intervention certainly seems to be making things worse for him and worse for the Fed and worse for the economy. It’s just very shortsighted, and we’re not used to that.”
Mulvaney in 2016: Trump should be disqualified
Incoming White House acting-chief of staff Mick Mulvaney once said Donald Trump’s past words and actions would disqualify him from becoming president in an “ordinary universe.”
The Most Powerful Reject in the World
Is there anyone who wants to hang with Donald Trump?
He’s not wanted.
Not at funerals, though the Bush family, to show class and respect for tradition, held their noses and made an exception.
Not in England, where they turned him into a big, hideous blimp.
Not by moderate Republicans, or at least the shrinking club with a tenuous claim to that label, who pushed him away during the midterms as they fought for their survival and clung to their last shreds of self-respect.
And not by a 36-year-old Republican operative who is by most accounts the apotheosis of vanity and ambition — and who just turned down one of the most powerful roles in any administration, a job that welds you to the president’s side and gives you nearly unrivaled access to his thoughts.
Nick Ayers didn’t see enough upside to the welding. He could do without those thoughts. He said no to becoming Trump’s next chief of staff, and this wasn’t just the latest twist in “As The White House Turns.”
It was, really, the whole story — of a president who burns quickly through whatever good will he has, a president who represents infinitely more peril than promise, a president toward whom a shockingly small and diminishing number of people in Washington feel any real affection, a president more tolerated than respected, though even the tolerance wanes.
.. He’s forever fixated on how wanted he is (“My crowds!” “My ratings!”), but what’s more striking is how unwanted he is. And that’s not merely a function of the crests and dips that every president encounters. It’s not really about popularity at all.
.. It’s about how he behaves — and the predictable harvest of all that nastiness. While other presidents sought to hone the art of persuasion, he revels in his talent for repulsion: how many people he attacks (he styles this as boldness); how many people he offends (he pretties this up as authenticity); how many people he sends into exile.
.. Careerists who would normally pine for top jobs with a president assess his temper, behold his tweets, recall the mortifications of Jeff Sessions and Rex Tillerson, and run for the hills. Trump sits at the most coveted desk in the world, but almost no one wants to pull up a chair.
.. What happened with Ayers, who is finishing a stint as Mike Pence’s chief of staff, speaks pointedly to the president’s diminished state. Bear in mind that Trump had already started telling people that Ayers would succeed John Kelly as chief of staff, so Ayers’s decision was doubly humiliating. Bear in mind who Ayers is: not just any political climber but someone whose every breath is focused on his enhanced glory, a trait frequently mentioned by Republicans who have watched his rise (and who sense in him more than a bit of Trump).
They still groan and titter about the blast email that he sent out, unsolicited, after he signed on to manage Tim Pawlenty’s 2012 campaign for the Republican presidential nomination. It crowed about all the riches in the private sector that he was passing over. It hinted that his services had been sought by Pawlenty’s competitors: Sorry, guys. It assumed a broad, edge-of-seat audience for the minutiae of his mulling and maneuvering. In fact there were news stories that mockedthe self-aggrandizement of his announcement.
.. At most other times, under most other presidents, someone like Ayers would jump at chief of staff, no matter the job’s infamous rigors. It catapulted such political heavyweights as Dick Cheney, James Baker, Leon Panetta and Rahm Emanuel to greater recognition and relevance.
.. So Jared Kushner and Ivanka Trump counted on Ayers’s interest and connived to shove Kelly out — he’ll leave by year’s end — so that they could shimmy Ayers in. They counted wrong. Ever clueless and oh so useless, they didn’t adequately factor in Trump’s toxicity, and the president now looks every bit as isolated as he is.
.. “Trump was left at the altar,”
.. Administration officials like Steven Mnuchin and Mick Mulvaney practically put out news releases to make clear that Trump shouldn’t ask them to be chief of staff. He has no Plan B, just B-list options like Matt Whitaker, the acting attorney general.
.. As leaders go, he has never been much of a magnet. He unequivocally romped in the Republican primaries, but since then? He got nearly 3 million fewer votes than Hillary Clinton did, a gap so remarkable that he had to claim a conspiracy of illegal voting to console himself. When he first filled his cabinet, he hardly had his pick of the litter.
Many top Republicans wanted no part of him. Some who did enter the administration agonized beforehand: Were they helping the country or indulging someone who didn’t deserve it?
When Barbara Bush died in April, it was clear to Trump that he shouldn’t travel to Texas to pay his respects. When John McCain died in August, Trump was told to skip the funeral.
The heads of countries that share America’s purported values (pre-Trump, at least) reproach and recoil from him. Prominent corporate leaders rebuke him, despite his administration’s business-friendly policies.
.. By one analysis of the midterms, the overall vote count for Democratic candidates for the House was 8.6 percentage points higher than for Republican candidates.
His wife takes public shots at him. Old friends tattle to prosecutors; new friends don’t exist. Talk about a twist: He sought the presidency, as so many others surely did, because it’s the ultimate validation. But it has given him his bitterest taste yet of rejection.