The ongoing clash between Donald Trump and Federal Reserve Chair Jerome Powell centers around interest rates and the independence of the Federal Reserve. Trump has repeatedly criticized Powell for not cutting interest rates aggressively enough, claiming it hinders economic growth. Trump even went as far as saying "Powell's termination cannot come fast enough!" and threatened to remove him from office. However, Powell has maintained that the Fed's independence is "a matter of law" and that presidential removal is "not permitted". The conflict highlights the delicate balance between monetary policy and political pressure, potentially impacting the US economy and global financial stability ¹ ².
