Summary of news on April 18, 2025, from the United States as follows:
1. The Trump - Powell relationship continues to be tense
Trump has long been dissatisfied with Jerome Powell, despite the fact that he was the one who nominated Powell.
He has continuously pressured the Fed to lower interest rates to stimulate economic growth.
2. Impact on the independence of the Fed
The Fed is designed to operate independently, avoiding political influence. A president publicly threatening to fire the Fed chair could undermine trust in that independence.
If Trump truly seeks to replace Powell, it would be an unprecedented and highly controversial move.
3. Effects on the markets and inflation
Demanding lower interest rates while inflation is a significant issue could lead to negative reactions in the financial markets.
Investors may be concerned about monetary policy being politicized, which could cause volatility in the stock, bond, and USD markets.
4. Tariff policies and economic risks
Powell warns that the tariffs Trump intends to impose will worsen inflation, and the Fed will find itself in a difficult position, having to choose between inflation and unemployment.
Trump's dissatisfaction with this warning indicates that he still prioritizes protectionist economic policies, despite long-term risks.
