#TrumpVsPowell President Donald Trump is at odds with Federal Reserve Chairman Jerome Powell, publicly expressing his frustration with Powell's monetary policy decisions. Here's what's happening ¹ ²:

- *Why Trump wants to fire Powell*: Trump's main concern is that Powell hasn't lowered interest rates, which the President believes would help him navigate the ongoing trade war more effectively. Lower rates could also lead to lower mortgage rates and energy prices, potentially boosting the economy and benefiting Trump's core supporters.

- *Trade war context*: Trump's trade war has escalated significantly, and time is running out before the midterm elections. The President thinks lower interest rates would help him manage the situation better, especially with the economy showing signs of slowdown.

- *Potential implications*: If Trump were to fire Powell, it would be a historic move, as no president has ever fired a Federal Reserve chair. The White House is exploring the possibility, with national security potentially being cited as the reason.

- *Economic stakes*: The outcome could impact the midterm elections and the last two years of Trump's term. A weakening economy, particularly in red states, could shift the political landscape and lead to a Democratic majority in Congress.

It's worth noting that ² ³:

- *Fed Board chair vs. FOMC chair*: While the President might try to replace Powell, it's not guaranteed that the new chair would have the same level of influence over monetary policy.

The situation is complex, and the potential consequences of Trump's actions on the Federal Reserve and the economy are significant.