Powell vs Trump: Battle Over Interest Rates and Central Bank Independence

 

Jerome Powell is making waves in the United Kingdom and the United States because U.S President Donald Trump harshly criticised the Federal Reserve Chair for maintaining current interest rates, calling him "stupid" and questioning whether he could appoint himself as Fed Chair. 

The Federal Reserve recently chose to hold rates steady despite economic pressure, prompting Trump to suggest replacing Powell, fuelling concerns about political interference in the central bank’s independence.

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The Federal Reserve’s decision to keep interest rates unchanged has sparked political backlash, especially from Trump, who has a history of clashing with Powell. 

Speculation is growing that Trump may replace him , with names like Scott Bessent and Kevin Warsh being mentioned. Critics worry about the erosion of central bank independence, while supporters argue rate cuts are long overdue to boost the economy.