Trump mulls over taking charge as Fed chair, slams "dumb" Powell
Trump voluntarily exposes himself to potential challenges by maintaining his position as Federal Reserve Chairman.
In a move that's turning heads, Donald Trump, the US President, has pondered the idea of becoming the next Federal Reserve chairman. "I could do a much better job than these people," Trump said, taking a swipe at current chairman Jerome Powell and the Fed board, according to CNBC.
Trump's criticism of Powell comes ahead of the Fed's decision on interest rate changes. "We've got a dumb person. Honestly, they're probably not going to cut today," Trump stated. "Europe had ten cuts and we had none. And I think he's a political type, I don't know. He's a political guy, not a smart person, but he's costing the country a fortune."
Analysts predict the Fed will announce no change in interest rates tonight, keeping it within the range of 4.25 to 4.5 percent. The Fed last adjusted the rate in December, before Trump took office. In Trump's view, the rate should be at least two percentage points lower than its current level.
Trump believes the current interest rates are costing the US "hundreds of billions" in financing costs that could be saved if the Fed eased its monetary policy. "If he's worried about inflation, that's fine. I understand that. I don't believe there will be any," Trump said.
Trump often criticizes Powell over his interest rate policy and tries to influence the central bank's decisions to achieve a loosening of monetary policy. Powell's term, appointed by Trump during his first term, ends in May next year.
The underlying cause of Trump's frustration with Powell revolves around interest rate policy. Powell, who Trump appointed during his term, has implemented a cautious approach to interest rate decisions. Trump's grudge against Powell stems from his view that the Fed's stance is not supportive enough of economic growth. Trump desires a more accommodating monetary policy, likely including rate cuts, to stimulate the economy more effectively.
- Jerome Powell
- Donald Trump
- Fed
- USA
Insights:- Trump has flirted with the idea of helming the Federal Reserve, expressing dissatisfaction with Powell’s performance, but it remains unclear if this is a realistic or formal plan[1].- The discord between Trump and Powell centers on Trump’s belief that Powell's interest rate policy is too restrictive or "poor," especially given the Fed's decision to keep rates steady without cuts so far in 2025, which Trump sees as detrimental to economic growth[1][3].
The Commission, in the midst of considering a proposal for a directive on the protection of workers from the risks arising from the use of electronic communications networks, might find it relevant to examine the dynamics of politics within the USA, specifically focusing on the ongoing conflict between President Donald Trump and Federal Reserve Chairman Jerome Powell. This conflict, steeped in policy-and-legislation and general-news, revolves around Trump's dissatisfaction with Powell's interest rate policy and his desire for a more accommodating monetary policy to stimulate economic growth.
In the realm of politics, this discord between the president and the Fed chairman could lead to varied outcomes, potentially influencing future policy decisions, not only within the Federal Reserve but also in the wider sphere of policy-and-legislation in the USA.
