Trump Reignites Feud With Fed Chief Jerome Powell, Threatening Institutional Independence
Donald TRUMP has signaled an imminent decision to replace Jerome Powell as Federal Reserve chair, escalating tensions over monetary policy. The president's criticism centers on Powell's perceived delays in adjusting interest rates, contrasting with recent cuts by European central banks.
This confrontation risks politicizing the traditionally independent Fed, with Trump's April 2025 legal maneuvers already challenging institutional neutrality. Market participants watch closely as the potential alignment of monetary policy with presidential agendas could reshape financial landscapes.
The brewing conflict comes as Powell's economic assessments clash with WHITE House recovery narratives. Aboard Air Force One, Trump framed the Fed's caution as an obstacle to growth, setting the stage for a constitutional showdown with far-reaching implications for dollar stability and global markets.