The Fed must lower interest rates or face legal action. That is Donald Trump’s ultimatum as he continues his campaign against Jerome Powell. What is at stake?
Donald Trump threatens Federal Reserve chairman again
“Idiot,” “moron,” “always late”… Donald Trump’s insults against Federal Reserve Chairman Jerome Powell have been numerous in recent months. This week, however, the US president has resorted to threats, saying he is considering major legal action.
Jerome “Too Late” Powell must lower rates NOW. […] The damage he has done by always being Too Late is immeasurable.
The US president is therefore considering “major legal action” to counter the Fed chairman, whom he cannot fire as he had hoped a few months ago. Last May, the Supreme Court confirmed the central bank’s independence from the Trump administration.
Donald Trump wants the Federal Reserve to lower interest rates for several reasons. On the one hand, this would stimulate short-term growth while boosting Wall Street. On the other hand, it would ease the US debt burden, which has become catastrophic.
But the risks of inflation and dollar depreciation are significant, prompting Jerome Powell to delay action. The battle is therefore far from over.
