Conflicts between Trump and Federal Reserve Chairman Jerome Powell have escalated, and most of the disagreements between them revolve around monetary policy and interest rates. The main reasons for the disagreement can be summarized as follows:
* Interest Rates:
* Trump has repeatedly called for lower interest rates to boost economic growth, while Powell believes that maintaining current interest rates is necessary to contain inflation.
* Trump sees Powell's policies as hindering economic growth, while Powell believes that the independence of the central bank is essential for maintaining economic stability.
* Intervention in Monetary Policy:
* Historically, many U.S. presidents have made direct comments on monetary policy, but Trump is more outspoken in criticizing Powell and pressuring him to change monetary policy.
* Many believe that Trump's intervention in monetary policy threatens the independence of the central bank.
* Tariffs:
* The disagreement between them intensified after Powell's statements about the impact of tariffs on the economy.
* Powell believes that tariffs could lead to increased inflation and a slowdown in economic growth.
In addition, there are some other factors that have contributed to the escalation of the disagreement between them, such as:
* Trump's straightforward and direct approach to dealing with economic issues.