Trump’s Reckless Assault on the Federal Reserve.
US President Donald Trump has long made it his mission to attack institutions he disagrees with—but none more so than the US central bank and its head, Jerome Powell. From his early days in office, Trump launched personal attacks, using crude social media insults and reckless rhetoric.
Elevated to lead the Federal Reserve in 2018, Powell was immediately branded a "bonehead" by Trump’s supporters, with the president reportedly eager to see him removed. Recently, amidst growing economic uncertainty and rising recession risks, Trump renewed his unhinged tirade. As markets teetered after his latest comments, Trump tweeted,
"Powell's termination cannot come fast enough!"
Despite the subsequent cooling of tensions and his denial of any plan to fire Powell—claims made in response to market jitters—Trump has never ceased pushing for undue influence over the Fed. His persistent interference comes as he ambitiously seeks to expand presidential power while ignoring the longstanding tradition of central bank independence, a cornerstone of economic stability in the nation.
At the heart of his obsession is a misguided desire for low interest rates. An erstwhile property developer, Trump’s affinity for cheap credit has driven his opposition to any rate hikes. "There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," he proclaimed, referring contemptuously to Powell. This crude remark highlights his blatant disregard for the complexities of monetary policy and his willingness to weaponize the economy for political gain.
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Political interference in the Fed—a move reminiscent of Nixon’s disastrous meddling in the 1970s—is dangerous and unprecedented in modern times. Legal experts, including former Fed vice chair and Brookings Institution scholar Donald Kohn, have warned that Trump’s actions pose a real threat to market confidence.
Such behavior undermines the independence of the central bank, causing long-term consequences for all Americans. As noted by Sarah Binder, Fed independence is crucial for maintaining public faith that inflation will be controlled, yet Trump's antics only stir doubts about this essential balance.
Joe Lavorgna, chief economist at SMBC Nikko Securities, remarked that Trump's comments are "a very classic macro argument" about the Fed’s delays, but his politically motivated interference risks making the bank overly cautious. Meanwhile, Powell, whose term ends next year, has repeatedly asserted that he is unbothered and immune to Trump's pressure—reminding everyone that the president lacks legal authority to remove him at will.
In conclusion, Trump’s incessant attacks on Jerome Powell and the Federal Reserve exhibit a dangerous level of disregard for institutional independence. His reckless and ideologically driven assault on economic stability undermines the checks and balances that have long protected America’s financial systems.
By leveraging crude insults and unfounded claims, Trump risks alienating investors and destabilizing key market pillars. His persistent demands for low interest rates at any cost reveal a dangerous obsession with personal legacy over public good. Ultimately, his actions jeopardize the nation’s economic future, leaving a trail of uncertainty and potential ruin.
