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 resurfaces in a scene that seems likely to repeat itself if Trump returns to the White House. Trump has never hidden his fierce criticism of Powell's monetary policies, particularly regarding interest rates, accusing him of slowing economic growth during his presidency.

In contrast, Powell insists on the independence of the Federal Reserve, emphasizing that his decisions are based on scientific standards 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 toward the interests 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 find themselves caught between optimism for interest rate cuts and fears of undermining investors' confidence in the Federal Reserve'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 in the next phase.

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