🇺🇸 Trump attacks Powell: rates are 'artificially high', a new Fed chair is needed
On Fox News, Donald Trump accused Fed Chairman Jerome Powell of stifling the economy and stated that the rate should be half as low — around 1–2%, not 4.25–4.5%.
— Powell is called 'foolish' and a 'bad person'
— Trump: 'we would grow twice as fast if it weren't for him'
— On June 27, Trump indicated: a new Fed chair is possible only if there is a willingness to immediately lower the rate
— three candidates are being considered, including Kevin Warsh
— the White House is discussing the creation of a 'shadow Fed chair' — a parallel center of influence on the markets
This rhetoric is a direct challenge to the independence of the Fed. If the pressure continues, US monetary policy could turn into a political tool. This is a troubling signal for the markets and the long-term financial reputation of the US.