#CreatorPad Trump Again Discusses Powell's Tenure: The Political Game of Market Disturbance and Federal Reserve Independence

Trump's dissatisfaction with Powell has a long history, primarily rooted in his belief that the Federal Reserve's monetary policy (such as interest rate hikes) hinders his economic agenda. He tends to favor a more accommodative monetary policy from the Federal Reserve to stimulate economic growth and a rise in the stock market.

Trump's remarks clearly indicate that he hopes the position of the Federal Reserve Chair aligns closely with his economic goals as President. This is a typical manifestation of instrumentalizing the central bank to serve short-term political interests.

The independence of the Federal Reserve is the cornerstone of its credibility and effectiveness. It allows Federal Reserve policymakers to formulate monetary policy based on economic data rather than political pressure. If the tenure of the Federal Reserve Chair depends on the personal preferences of the President, then the Federal Reserve's decisions will be seen as a result of political intervention rather than professional economic analysis. This would severely undermine the credibility of the Federal Reserve, causing it to lose the market's trust when addressing challenges such as inflation. Historical experience shows that when central banks yield to political pressure, they often tend to adopt excessively accommodative monetary policies, leading to runaway inflation. This is also one of the main reasons why central banks around the world generally pursue independence. The market's certainty about Federal Reserve policy is highly dependent on this independence. If the position of a Federal Reserve Chair could change at any time for political reasons, it would bring tremendous uncertainty to the market, affecting investment decisions and long-term planning.

Trump's remarks about Powell are not merely a simple personal grudge; they reflect the profound contradiction between politicians pursuing economic goals and the independence of the Federal Reserve. His choice to wait until the end of the term to make a decision is a rational choice that weighs short-term market stability against long-term political objectives. These comments alone are enough to alert the market and once again emphasize how crucial the independence of the Federal Reserve is for maintaining financial stability and investor confidence in an uncertain macro environment.