#特朗普施压鲍威尔
Recently, the focus of the American political scene and financial markets
has been concentrated on an unprecedented power struggle.
U.S. President Donald Trump openly threatened
to fire Federal Reserve Chairman Jerome Powell
on the grounds that he "refused to cut interest rates, hindering economic growth."
This conflict surrounding the autonomy of monetary policy
not only challenges the 70-year tradition of independence of the U.S. central bank
but also provokes deep reflection on global financial stability and the future
of the cryptocurrency market:
When the Federal Reserve may become a political tool,
will cryptocurrencies like Bitcoin become a new "safe haven"
or fall into greater uncertainty?
Powell was nominated as Federal Reserve Chairman during Trump's term in 2018,
when their relationship was still amicable.
As the Federal Reserve continued to raise interest rates from 2018 to 2019 to curb inflation,
Trump began to frequently criticize Powell's policies as "hindering economic growth."
He publicly stated: "The Federal Reserve is my biggest threat."
"They are raising rates too quickly and cutting rates too slowly."
This contradiction further intensified after the COVID-19 pandemic in 2020.
Despite Powell's unprecedented loose monetary policy,
(including zero interest rates and unlimited QE),
Trump still accused him of failing to effectively stimulate the economy.
As we enter 2024, with Trump once again elected as President,
the conflict between the two reaches its peak.
Trump advocates for "radical interest rate cuts to stimulate the economy,"
believing that the current benchmark interest rate is too high,
leading to increased corporate financing costs and pressure on the stock market.
In a public speech on April 17, he bluntly stated:
"Powell's economic policies are disastrous; he should cut interest rates immediately,
or the U.S. economy will fall into recession."
Meanwhile, Powell insists on the Federal Reserve's policy autonomy,
stressing that interest rate decisions should be based on inflation data and employment market performance,
and refuses to yield to political pressure.
Behind this difference lies a confrontation of two economic philosophies:
Trump adheres to "short-term growth first,"
attempting to maintain stock market prosperity and economic hegemony through low interest rates,
while Powell follows the "inflation targeting regime,"
believing that cutting rates too early could trigger the risk of stagflation.
After announcing the "reciprocal tariffs" policy,
the global financial market became turbulent, and the U.S. stock market experienced continuous declines.
Market complaints intensified, further exacerbating Trump's anxiety
and prompting him to adopt the extreme measure of "threatening to fire."
