Hello my dear ones wherever you are today I will briefly talk about the term #TrumpVsPowell which refers to the public dispute between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell that became evident during Trump's presidency (2017-2021).
Main reasons for the dispute
1. Interest rates
- Trump preferred an easy monetary policy (low interest rates) to support economic growth and markets, especially before the elections.
- But Powell raised interest rates several times between 2017 and 2018, which angered Trump who believed it slowed down the economy.
2. Independence of the Federal Reserve
- Trump publicly criticized Powell via Twitter, calling him "useless" and "unqualified," accusing him of harming the economy.
- Powell defended the independence of the "Federal Reserve" and refused to yield to Trump's political pressures.
3. Dealing with the Corona pandemic (2020)
- Although Powell lowered interest rates to nearly zero during the pandemic, Trump continued to criticize him for not adopting more extreme policies.
The hashtag evolved in 2024-2025
- The hashtag resurfaces with the possibility of **Trump winning the 2024 presidential election as observers wonder about Powell's fate if Trump returns to the White House, especially since Powell's term as Fed Chair ends in 2026
- It is rumored that Trump may try to replace him with someone more aligned with his policies (like Judy Shelton or Kevin Warsh)
Why is this conflict important
- Because the independence of the central bank is considered a pillar of the U.S. economy, and presidential intervention may threaten market confidence.
- Trump's harsh statements against Powell were unprecedented in the relationship between the U.S. presidency and the Federal Reserve.
May you be well and under God's care ...