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Trump vs. Powell: The Battle for Influence Over the American Economy
The confrontation between former American President Donald Trump and Federal Reserve Chairman Jerome Powell is renewing, 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 Federal Reserve, 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 considers interest rate cuts key to stimulating the economy and markets, believes that presidential intervention is necessary to steer monetary policy towards the interest of the people – as he sees it.
With the increasing likelihood of Trump running in the upcoming elections, questions arise: Will he oust Powell if he wins? Will monetary policy turn into a purely political tool? In this context, markets stand between optimism for interest rate cuts and fears of undermining investor confidence in the independence of the Federal Reserve.
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.