Chairman Donald Trump Criticizes the United States Central Bank and Monetary Policy Department
President Donald Trump has publicly accused the Federal Reserve (Fed) of engaging in activities against him. He has freely criticized Jerome Powell and the entire Fed board, calling them the cause of billions of dollars in losses for the U.S. economy while undermining the fiscal policy of the administration. On the social network Truth Social, he stated:
"Powell has cost our country hundreds of billions of dollars. He is one of the most ignorant and destructive people in the government, and the Fed Board is complicit. We should reduce interest rates by 2.5 points to save billions of dollars on Biden's short-term debt. Low inflation has been enough already! It's a shame for Americans!"
Trump Undermines Powell, Blames the Burden of U.S. Public Debt
This is not the first time Trump has publicly criticized Powell with derogatory remarks, but this time he also accused the entire Fed Board of participating in an unclear 'conspiracy.' Notably, Trump personally appointed Powell to the Board during his first term, along with most other members who belong to the Republican party.
The current member list includes Jerome Powell (Republican), first appointed in 2012, serving as Chairman from 2022 to May 2026; Philip Jefferson (Democrat), Vice Chair until 2027; Michelle Bowman (Republican), Vice Chair for Supervision until 2029; along with other members like Christopher Waller, Lisa Cook, Michael Barr, and Adriana Kugler, all with long terms extending to 2026 – 2038. All unconditionally support Powell.
Despite members having different political backgrounds, the entire board supports Powell, and he also enjoys strong backing from Congress and the U.S. Senate. To remove Powell, Trump would have to face many complex legal and political troubles, making this nearly impossible. Nevertheless, he continues to call Powell 'ignorant' and pushes public campaigns against him.
Powell's Tough Stance and Interest Rate Policy
In a recent meeting, Powell confirmed that there are no plans to lower interest rates in the near future. He said, 'We need to wait for more data to better understand the economic outlook before considering any adjustments.' This implies that policymakers remain steadfast in maintaining a tight financial stance, not rushing to cut rates.
The authorities' limitation is to maintain a stable policy to avoid causing significant volatility, given the risk that the market could react negatively if monetary policy tools are adjusted too hastily.
Trump's Circular Arguments about the Fed Chair and Multi-Layered Policies
Despite continuously insulting Powell, Trump has not officially removed or replaced the Fed Chair. In fact, he once promised to appoint a new Chair 'very soon' and later denied this. Legislators and lawmakers know that dismissing the Fed Chair is not simple due to the 14-year terms of members and the Senate confirmation process.
The United States Central Bank, located in the Eccles Building, Washington, D.C., is one of the most powerful organizations globally in guiding financial policy, influencing all major economies. Trump accused them of being 'accomplices' in a plot to disrupt the economy – an unfounded accusation, but it positively impacts his supporters, especially when interest rates remain high and the public is dissatisfied.
This action clearly reflects that Trump is still trying to exploit political issues in the cryptocurrency and fiscal policy sectors to attract attention and control public opinion, despite the reality of the Central Bank's critical role in global stability.
Source: https://tintucbitcoin.com/trump-chi-trich-fed-buoc-toi-powell/
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