The Tension Between Donald Trump and Fed Chair Jerome Powell Heats Up
The tense relationship between Donald Trump and Federal Reserve Chair Jerome Powell continues to escalate. Powell currently has a term until May 2026, but Trump is considering announcing a successor much sooner. This move is noteworthy as it will directly impact interest rate policy and the economic direction of the United States.
According to information from reputable sources, Trump appears dissatisfied with the Fed's pace of interest rate cuts, believing it is too slow compared to expectations. However, announcing personnel too early can put pressure on candidates from public opinion and may lead to failure in the confirmation process, undermining the effectiveness of current policies.
Who Will Be the Next Fed Chair?
At a press conference at the NATO summit, Trump revealed he has “narrowed down” the list of candidates to about three to four. The prominent names are all loyal to him: Kevin Warsh, Kevin Hassett, Chris Waller, and David Malpass, along with Scott Bessent considered another strong candidate. They are expected to promote aggressive interest rate cut policies and support faster economic growth.
Choosing the head of the Fed in this sensitive context is assessed as having a significant impact on monetary direction and economic stability in the U.S. in the near future, especially if Trump returns to the White House.
Can Trump Fire Jerome Powell?
Although Trump has hinted several times at possibly firing Powell, in reality, the law protects the power of the Fed Chair quite firmly. A recent ruling by the U.S. Supreme Court affirmed that the Fed operates independently from other government agencies, making Powell's tenure difficult to interfere with. In his previous term, Trump considered this but backed down due to negative market reactions.
This time, he even shared on social media that he “might change his mind” regarding firing Powell, indicating the uncertainty surrounding the power struggle at the Fed.
The Struggle Over Fed Interest Rates
The debate between Trump and Powell mainly revolves around interest rate policy and inflation control. Trump urges the Fed to significantly cut interest rates to stimulate economic growth, while Powell maintains a cautious stance due to concerns that tariff plans could drive prices up. With about 11 months left in Powell’s term, the determination of the new Fed leadership will have far-reaching implications for economic prospects amid many fluctuations.
In summary, Trump wants to change Fed leadership to promote a more accommodative monetary policy, but many legal factors, market reactions, and timing strategies will pose significant challenges to this goal. The story continues to unfold and remains a major focus for investors and those interested in cryptocurrency as well as the global economy.
Source: https://tintucbitcoin.com/trump-tiet-lo-danh-sach-thay-chu-tich-fed/
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