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President Donald Trump has escalated his public feud with Federal Reserve Chair Jerome Powell, branding him a “numbskull” while simultaneously pledging not to fire the central bank chief despite mounting frustration over the Fed’s reluctance to slash interest rates.
Speaking at a White House event Thursday, Trump delivered his harshest criticism of Powell’s monetary policy approach, claiming that lowering rates by just one percentage point could save the United States $300 billion annually, while a two-point reduction would generate $600 billion in savings.
Why Trump Wants to ‘Force Something’
Trump’s latest verbal assault marks the third time in two days that his administration has publicly targeted Powell. It follows similar criticisms from Commerce Secretary Howard Lutnick and Vice President JD Vance, who called the Fed’s stance “monetary malpractice.”

The coordinated pressure campaign came from the administration’s growing impatience with the central bank’s independence, particularly as Trump faces re-election pressures and seeks to demonstrate economic leadership.
Despite repeatedly calling Powell “Too Late” and questioning why firing him would be controversial, Trump stopped short of threatening termination, instead ominously suggesting he “may have to force something” if rate cuts don’t materialize soon.
The timing of Trump’s criticism appears strategic, coming as recent economic indicators show inflation cooling and energy prices declining due to increased domestic drilling under his “drill, baby, drill” energy policy.

Powell’s current term as Fed chair expires in May 2026, and Trump has hinted that an announcement regarding his nominee for the next Fed chair could come soon.
Harvard legal experts suggest that while Trump may have constitutional authority to remove Powell, such a move would likely trigger severe market volatility and undermine the Fed’s credibility as an inflation fighter, potentially causing long-term interest rates to spike even if short-term rates were cut.
Presidential Pressure Campaign Intensifies Fed Independence Debate
The escalating confrontation between Trump and Powell is a fundamental clash over Federal Reserve independence with deep constitutional and economic implications.
Trump’s frustration stems from his belief that the current interest rate environment unnecessarily burdens federal borrowing costs, particularly as the government faces mounting short-term debt obligations approved during the Biden administration.

The president argued that Europe has implemented ten rate cuts while the Fed has delivered none, despite similar economic conditions and falling inflation metrics.
Legal scholars say that while the Federal Reserve Act of 1913 allows governors to be removed “for cause,” the Supreme Court’s recent decisions have gradually eroded the traditional “for cause” protections that independent agencies have enjoyed for 85 years.
Harvard Law School’s Daniel Tarullo, a former Fed Board member, suggests that three conservative justices have hinted at potentially treating the Federal Reserve differently from other agencies, possibly creating a carve-out based on the central bank’s historical precedent dating back to the First and Second Banks of the United States.
However, market dynamics may provide Powell with more protection than legal statutes, as any attempt to remove the Fed chair would likely trigger immediate and severe market reactions that would prove counterproductive to Trump’s economic objectives.
The anticipated market volatility is a powerful disincentive, particularly given that Treasury Secretary Scott Bessent has focused on maintaining stable 10-year Treasury rates, which are key for economic investment decisions.
Recent economic indicators have strengthened Trump’s argument for immediate monetary easing. Inflation data show continued price stability and energy costs declining due to expanded domestic oil production.

The favorable Producer Price Index reading in May has calmed fears about tariff-induced inflation spikes, emboldening the administration to intensify pressure on the Fed while markets increasingly price in potential rate cuts later this year.

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The U.S. Federal Reserve (Fed) isn’t planning to cut interest rates anytime soon — and according to most economists, no change is likely before September, possibly even later. Despite political pressure and mounting inflation concerns, monetary policy remains frozen as the central bank stays cautious.

🔒 Rates Stay at 4.25%–4.50% — No Surprises in June
In a Reuters survey conducted from June 5–10 with 105 economists, nearly all (103) agreed that the Fed would leave rates unchanged at the upcoming June 17–18 meeting. The current rate range has remained the same since the beginning of the year — 4.25% to 4.50%.
The primary reasons? Persistent inflationary pressure and a resilient job market that doesn’t yet warrant Fed intervention.

🧨 Trump’s Tariffs and Fiscal Uncertainty Add to the Risk
Economic uncertainty is being fueled by unresolved trade tensions and tax reform efforts. President Donald Trump raised tariffs on steel and aluminum from 25% to 50%, stoking fears of prolonged inflation. Meanwhile, a new tax bill, which passed the House of Representatives, is still stuck in the Senate.
Trade negotiations with China have stalled, and the 90-day tariff truce set to expire on July 9 shows no signs of resolution.

📉 Trump Wants Rate Cuts — But Fed Holds Its Ground
Trump has called for a full percentage point cut, which would lower the Fed’s target rate to 3.25%–3.50%. Still, the Fed is holding firm and refuses to act under pressure.
As Jonathan Pingle, Chief U.S. Economist at UBS, put it:
“As long as the job market holds up, the Fed will stay put and lean on rhetoric to maintain credibility in its fight against inflation.”

📊 Most Economists: No Cuts Until Q3 2025 at the Earliest
According to the Reuters survey:

🔹 59 economists expect rate cuts in Q3 2025

🔹 44 economists predict a cut in Q4 or later

🔹 20 economists believe there will be no cut at all this year

💸 Inflation and National Debt Still Weigh Heavily
Inflation remains sticky, and U.S. federal debt has ballooned to $36.2 trillion. A new tax-and-spending package making its way through Congress could add another $2.4 trillion. These fiscal pressures are pushing long-term interest rates higher, directly impacting housing and business investment.
Bill Adams from Comerica Bank explained:
“With more fiscal stimulus on the way, the Fed has no reason to boost the economy with lower rates. Deficits are rising, and long-term yields are being pushed up, straining interest-sensitive sectors like real estate and business capex.”

📉 Weak GDP Growth, No China Deal, and Persistent Inflation
U.S. GDP shrank 0.2% last quarter, driven by a widening trade deficit. Growth for the full year is now expected to hit just 1.4%, down from 2.8% in 2024. The 2026 forecast is only slightly better — 1.5% — and hasn’t changed since May.
Although U.S. officials are negotiating with China in London, no deal is expected before the tariff freeze expires. In the meantime, both economists and consumers are preparing for persistently high prices.
Inflation expectations remain well above the Fed’s 2% target, and no one expects that to change before 2027.

📌 In Summary: The Fed Is in No Hurry — and That’s Not Changing Soon
Of the 105 economists surveyed, 85 expect rates to remain at 3.75%–4.00% through the end of 2025. The Fed appears to be in wait-and-see mode, with no incentive to move until something dramatic changes.
For now, the central bank is watching and waiting — and likely will be for a while.

#Fed , #TRUMP , #Tariffs , #worldnews , #FederalReserve

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

U.S. Core CPI Data Hints at Cooling Inflation
On June 11, 2025, the U.S. Core CPI data revealed inflation rising slower than expected, fueling speculation about Federal Reserve policy shifts.
Key Figures
Year-over-Year (YoY): 2.8% (Expected: 2.9%)Month-over-Month (MoM): 0.1% (Expected: 0.3%)
Core CPI, excluding volatile food and energy, is a critical measure of underlying inflation. The lower-than-forecast numbers suggest inflation is easing, nearing the Fed’s 2% target. This could give the Fed room to consider rate cuts, especially if future data confirms the trend.
Impact and Outlook
Markets welcomed the news, with investors eyeing potential Fed rate cuts in late 2025. Consumers may see relief from rising costs, though key expenses like housing remain high. The Fed will likely monitor further data before acting, balancing inflation control with economic growth.
This CPI report marks a key moment for the U.S. economy, hinting at progress in taming inflation. Stay tuned for Fed updates and market reactions.
#economy #cpi #FederalReserve #Binance

Tensions are rising once again behind the scenes of U.S. politics – former President Donald Trump is reportedly considering replacing Federal Reserve Chairman Jerome Powell. According to sources close to Trump’s team, current Treasury Secretary Scott Bessent is a leading candidate for the job. While formal interviews haven’t started yet, Trump’s advisors are said to be heavily pushing for Bessent’s nomination.

Race for the Fed: Bessent vs. Warsh
Powell’s term doesn’t end until May 2026, but Trump has hinted that he will announce a successor “very soon.” While Kevin Warsh, a former Fed board member, was interviewed for the role back in November 2024, Bessent’s name is now being discussed with equal – if not more – seriousness.
Bessent currently heads Trump’s economic team and plays a key role in overhauling trade policy, reforming taxes, and cutting back federal regulations. As Treasury Secretary, he would typically help select the next Fed Chair – but now, he might end up taking the job himself.
When asked about the possibility by reporters, Bessent smiled and said: “I have the best job in Washington. It’s the President’s decision to choose what’s best for the economy and the American people.”

Bessent’s Star Is Rising
Tim Adams, president of the Institute of International Finance, called Bessent a strong candidate who enjoys a high level of trust among global financial leaders. He referred to Bessent as a “dark horse” in the race but acknowledged his growing momentum. Warsh, however, remains a serious option – Trump recently stated he has “great respect” for him.
Bessent is also directly involved in negotiating a new trade deal with China, which is a top priority in Trump’s global economic reset. His leadership is praised by former White House chief strategist Steve Bannon, who said: “Bessent isn’t just a cabinet star, he’s a safe hand for global capital markets.”

Trump’s Frustration with Powell Grows
Trump has long criticized Powell, whom he nominated in 2017, for being too cautious with interest rate cuts. Despite economic uncertainty, the Fed has held rates steady through 2025 – a decision Trump recently challenged during a meeting with Powell at the White House.
Fed officials argue the pause is necessary due to inflation risks, particularly from Trump’s evolving tariff strategy. They warn that new tariffs could slow growth and push consumer prices higher, calling for a more cautious approach.
Trump disagrees, claiming the Fed is making a mistake. He has also expressed the belief that presidents should have more influence over monetary policy – raising concerns about the Fed’s independence under new leadership. Whoever replaces Powell will need to prove they’re not a puppet of the White House.

Other Names in the Mix
Besides Bessent and Warsh, other potential candidates are being floated within Trump’s inner circle:
🔹 Kevin Hassett – Head of the National Economic Council

🔹 Christopher Waller – Current Fed Governor

🔹 David Malpass – Former World Bank President during Trump’s first term
Despite Bessent’s strong global financial relationships, some experts point out that monetary policy isn’t his primary area of expertise. Economist Arthur Laffer, a longtime Trump ally, said: “Bessent is great, but he already has a job. Warsh is simply perfect for this role.”
So, who will ultimately take the Fed’s top seat? The decision is expected soon – and it could reshape not only U.S. monetary policy but also financial markets worldwide.

#TRUMP , #Fed , #FederalReserve , #USPolitics , #TradingCommunity

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

🔥 The tension just hit a boiling point! Donald Trump has dropped a bombshell — a decision on who will lead the Federal Reserve is "coming out very soon."

👀 Trump has been fuming for months over Fed Chair Jerome Powell's refusal to cut interest rates, even as the ECB has slashed rates 8 times this year!

💣 Despite mounting pressure, Powell stands firm — no rate cuts in sight. But Trump’s patience may have run out…

💬 “If he won’t cut rates, we’ll cut him loose!” — Trump insiders hint a shake-up is near.

📉 Markets, economists, and the global stage are all watching.

Will Trump make Powell the fall guy for high rates?

👉 Buckle up — this could be the biggest move in Fed history.