Trump has increased his attacks on Federal Reserve Chair Jerome Powell, claiming he’s damaging the U.S. economy. Trump alleges Powell’s high interest rates, meant to fight inflation, are instead hurting businesses and hindering growth. He suggests political motives are behind Powell’s actions, aimed at hurting his reelection chances.
Trump appointed Powell but has repeatedly criticized the Fed’s policies. He believes Powell is acting too slowly to lower rates, even as inflation decreases. Economists warn that constant attacks on the Fed’s independence could weaken the central bank’s effectiveness and credibility. They say political interference with monetary policy could have severe consequences for the economy.
Treasury Secretary Janet Yellen has defended the Fed’s independence. All eyes are on the Fed’s next meeting, as analysts closely watch to see if Trump’s constant criticisms influence the central bank’s decisions and any further interest rates changes. The next monetary policy may be a signal for the political relations with Powell.
The impact from the comments continue to make headlines across a wide range of publications. Finishtit
