As if targeting different countries was not enough, President Trump has started targeting people in his country, and in the latest event, he has accused Federal Reserve Chairman Jerome Powell of “playing politics” when the latter has denied reducing rates after a fear of inflation due to increased tariffs. Trump also said that it won’t take him much time and effort to evict the chairman.
In the social media post, President Trump said that his eviction “cannot come fast enough” This was a reaction to Powell’s speech, which the president has called a “complete mess”. The Federal Reserve chairman has said earlier that the rate cuts may inflate the economy, due to which interest rates on loans and mortgages are high, with no relief in sight from the Reserve Bank of the country.
The remarks were made in Powell’s speech at the Economic Club of Chicago, where he asserts that “independence is very widely understood and supported in Washington and in Congress, where it really matters.” The speech was hailed by the investors and dignitaries present at the Club.
Furious Trump had almost threatened the chairman with termination, saying that his only duty is towards the people of America, and a rate cut is what the country needs, the only thing he is not doing. The debate became messed up, however, the president still fails to understand that the economy does not run on a magic machine where supplies can be made available as quickly as the demand rises.
Nonetheless, if the feud between the president and the chairman of the Fed widens, it will not only affect the US but also the global economy, worsening the already slowing trend. Powell has reacted to the President’s words, saying that he has no plans to quit and will maintain his independent stand up until his tenure ends in May next year. It is reported that the Treasury secretary, Scott Bessent, had already cautioned the White House that if Powell was to be removed, this could destabilise the economy. Kristelina Georgieva, the Managing Director of the International Monetary Fund, also remarked at the statements made by Trump saying that the tariffs have already destabilized the economy and institutions like the Federal Reserve are the pillars which are keeping the economy afloat, if there were to be such a disaster between the President and the chairman it will be tragic for the world economy.
