On Thursday (17), US President Donald Trump accused the President of the Federal Reserve, the US Central Bank, Jerome Powell, of acting politically against his government.
“He will leave (the position). If I ask, he will leave. I don’t think he is doing a good job. Always very late. If you want, he will leave. Believe me,” Trump said.
The US President pressed the monetary authority to reduce the country’s basic interest rate, saying that retail prices are hanging and that commercial tariffs make the United States richer.
Trump classified the decision of the Federal Reserve to maintain interest rates at the present level as “complete chaos”.
The speech contrasts with the tradition of monetary policy in the United States, which is specified for a period of four years for the heads of the central bank. The stability of the leader allows the leader to make difficult decisions politically, with the purpose of preserving the purchasing power of the currency and ensuring full workers in the country.
However, Trump has already shown the willingness to refuse the employees with these same guarantees. This is the case of the managers of the Federal Trade Committee. The decision came to the Supreme Court, where one of the judges was granted a judicial matter favorable for demobilization until the plenary session decided the advantage of the complaint.
It is still unclear whether Trump’s threats against the Federal Reserve Speaker are for distraction, or just distraction in a political, sensitive moment. Either way, the White House adds another component of uncertainty in a scenario characterized by the unification of the United States’ commercial policy. The attacks are punished by the confidence of economic agents in the assets that, so far, are the safest in the world: American treasury titles.
Jerome Powell expires only in May 2026 and publicly said it was not resigned, despite the pressure from the White House.
Donald Trump himself was the one who nominated Powell to head the central bank, in 2018. After four years, Joe Biden kept him in office.
On Thursday, Christine Lagarde, President of the European Central Bank, came out in defense of Jerome Powell and the Federal Reserve Independence.
“Let me be Clara: I have a lot of respect for my friendly friendly colleague, Jay Powell. We have a strong and continuous relationship between central bankers.”
