#PowellVsTrump

The feud between Jerome Powell, the Federal Reserve Chair, and Donald Trump, the former US President, revolves around monetary policy and the Fed's independence. Trump wants lower interest rates to boost economic growth, while Powell's Fed has kept rates steady between 4.25% and 4.50% due to inflation concerns and uncertainty around Trump's tariffs. Powell maintains the Fed's independence is crucial, emphasizing that decisions are based solely on economic data and their dual mandate of maximizing employment and maintaining price stability. Trump, however, has questioned Powell's competence, called for his termination, and even suggested appointing himself to run the Fed once Powell's term concludes in May 2026. Economists warn that political pressure on the Fed could unsettle markets, and the tension has sparked debates about central bank independence and the role of monetary policy .