Donald Trump has relaunched his attacks on Jerome Powell, the president of the Federal Reserve. The latter accuses him of not acting quickly enough to lower interest rates. In full political tension, this criticism revives the debate on the independence of the Fed and its growing influence on the financial markets.
In short
- Donald Trump accuses Jerome Powell of being too slow to lower interest rates.
- Rick Scott, Florida senator, publicly supports Trump's criticism.
- These attacks call into question the tradition of independence of the Fed.
- Powell reaffirms the independence of the Fed during a speech in Chicago on April 16.
- A drop in rates is now anticipated for June 2025, with a probability of 65 %.
Donald Trump tackles Jerome Powell
On April 17, 2025, Trump posted on Truth Social that the inaction of Powell will harm the American economy, especially with the drop in inflation. He expressed his dissatisfaction by declaring: “The end of Powell cannot arrive too quickly”, stressing his dissatisfaction with the policy of the Fed, which has just drawn up a dark picture of the economy.
Trump's remarks were supported by Florida Senator Rick Scott, who also criticized Powell management, calling for a change at the head of the Fed. This public attack breaks a tradition of several decades aimed at protecting the federal reserve from political interference, highlighting the growing political issues around monetary policy decisions.
Towards a change of course to the Fed?
Jerome Powell, for his part, has repeatedly defended the independence of the federal reserve. During a speech at the Chicago Economic Club on April 16, Powell reaffirmed that the independence of the Fed is registered in the law, and that it intends to complete its mandate, which expires in May 2026. However, the growing political pressure of Trump and other republican figures could complicate the situation for Powell.
Although the Fed meeting in May should maintain a wait -and -see approach, the probability of a rate reduction in June has climbed more than 65%! Thus reflecting the growing anticipation of the market. While moderate inflation and global trade tensions persist, Trump calls for more daring monetary action will likely continue to influence discussions on the management of the Federal Reserve.
While the tensions between Donald Trump and Jerome Powell are at their climax, Powell's management at the head of the Federal Reserve seems to be more and more disputed. The Fed's monetary decisions will continue to influence the financial markets, and the political climate could shape the future of future American economic policies.
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
