#PowellVsTrump The conflict between Jerome Powell, the head of the Federal Reserve, and former President Donald Trump is mainly about how the U.S. economy should be managed. Here are the main points:
1. Disagreement on Interest Rates:
Trump wanted the Federal Reserve to lower interest rates to help the economy grow faster. But Powell kept interest rates steady, saying it was important to control inflation and keep the economy stable. Trump thought rates should be 2–3% lower.
2. Fed Independence:
Trump talked about firing Powell, which worried many people. The Federal Reserve is supposed to make decisions without political interference. Experts said removing Powell would be unusual and possibly against the law.
3. Renovation Spending:
Trump also criticized Powell for spending too much—about $2.5 billion—on renovating the Fed’s headquarters. He accused Powell of wasting money and even called it “fraud.”
4. Public Arguments:
Their disagreements became very public, causing uncertainty in the stock market. Some experts warned that firing Powell could harm the economy.
5. What Could Happen:
If Trump did fire Powell, it could shake up the way the U.S. handles its financial policies and make investors nervous, possibly hurting the economy.
Despite Trump’s comments, some officials—like Treasury Secretary Scott Bessent and Congressman French Hill—have questioned whether Trump will actually go through with it.