The smell of gunpowder is once again filling the air between the White House and the Federal Reserve! This time, Trump, armed with anger and a calculator, is directly targeting Fed Chairman Powell's heart. On his own social media platform Truth Social, this former president is now bombarding Powell with vengeful vigor: 'He is too late! Too slow!' He even presents a mocking 'crown', 'Mr. Too Late'.
Trump's core demand is simple and direct, yet wrapped in shocking data support: he urges the Fed to immediately and significantly cut interest rates by 1 to 2 percentage points! Why? Because in his eyes, this is not only about the economy's 'heat', but also a 'calculation' concerning the fate of the nation. Trump throws out a jaw-dropping calculation: an 'opportunity cost' of federal debt reaching up to 1 trillion dollars per year! This cold number transforms into a heavy burden on American taxpayers and families in his words; every extra day of waiting, massive interest flows continuously like blood from the fiscal arteries.
"Incredible," Trump's anger boils between the lines, "Look at today's inflation! It is already 'dead', 'over', why should it still be shackled by fear? Why is Powell still hesitating?" He fiercely questions the 'timeliness' of the Fed's decisions, believing that the rigid 'data-driven' approach has become a 'chronic poison' that misses critical opportunities.
What further heats up this war of words is Trump's unabashed intention to 'change leadership'. He blatantly hints that Powell's 'position is unstable', threatening to soon announce his preferred candidate for Fed chairman. However, an awkward reality splashes cold water on this; Powell's statutory term is rock-solid and will not end until 2026. This sharp sword of power hangs in the air but cannot strike down for now, adding dramatic tension to the current situation.
The reality is coldly presented before us. Just at the recent June meeting, the Fed remained motionless, firmly locking the benchmark interest rate in the high range of 4.25%-4.50%. Their 'battlefield declaration' is clear and concise: everything is based on data, not politics. Even when facing Trump's fierce barrage, Powell and his colleagues still try to stabilize that delicate but critical dividing line; the independence and professionalism of the Fed are inviolable.
However, the market has long keenly sensed the smell of gunpowder in the air. The once universally expected 'path of easing' has suddenly been extended. Trump's declared escalation of tariff policies and the looming threat of skyrocketing oil prices... these are seen as the 'ghosts' that could reignite inflation, forcing traders to significantly delay their bets on interest rate cuts, with pessimists even envisioning a turnaround only by the end of 2025.
This confrontation occurring in the 'eye of the storm' of the Federal Reserve has long transcended the realm of pure economic debate. It is a landmark event that signifies:
A survival pressure test concerning the 'American wallet': a trillion-dollar debt cost, who can downplay it? An ultimate battleground of 'power' and 'independence': can the political giant shake the central bank's ironclad defenses? A future game that pulls the nerves of the global economy: will the 'ideal chairman' in Trump's mind completely overturn the flow of global funds?
When 'Mr. Too Late' meets the 'Revenge Candidate', this century's struggle between power and economic logic has only just begun its bloody prologue. Who will be the winner? The U.S. debt ceiling and the wallets of ordinary people are holding their breath, waiting for an answer.
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