Trump Threatens Fed Chair and Treasury Secretary Over Interest Rates
President Donald TRUMP has renewed his threats to fire Federal Reserve Chair Jerome Powell if interest rates aren't cut to his liking. Speaking at a Saudi Arabian investment forum, Trump extended the threat to Treasury Secretary Scott Bessent, warning both officials to "get it fixed fast" or face termination.
The Federal Reserve maintains its independence as a central bank, with Powell answering to neither the President nor the Treasury. Trump's persistent pressure raises concerns about potential erosion of institutional autonomy—a cornerstone of monetary policy credibility.
Market implications loom large. Any perceived politicization of rate-setting could destabilize financial markets, where investors prize predictability in monetary policy. Cryptocurrencies often react sharply to macroeconomic uncertainty, particularly when fiat currency stability comes into question.
