#TrumpVsPowell
Trump vs. Powell: The Battle for Influence over the American Economy
The confrontation between former U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell is renewed, in a scene that seems likely to repeat if Trump returns to the White House. Trump has never hidden his fierce criticisms of Powell's monetary policies, particularly regarding interest rates, accusing him of slowing down economic growth during his presidency.
In contrast, Powell insists on the independence of the Fed, emphasizing that his decisions are based on scientific criteria aimed at achieving financial stability and combating inflation, away from any political pressures. However, Trump, who believes that lowering interest rates is key to stimulating the economy and markets, sees presidential intervention as necessary to steer monetary policy towards the interests of the people – as he perceives them.
As the chances of Trump running for the upcoming elections increase, questions return: Will he oust Powell if he wins? Will monetary policy become a purely political tool? In this context, markets stand between optimism for interest rate cuts and fears of undermining investors' confidence in the Fed's independence.
The battle between Trump and Powell is not just a personal dispute, but a struggle over who holds the keys to the American economy, and who will steer the course of the next phase.