Trump Pressures Fed: A Call for Rate Cuts and Leadership Change

President Donald Trump criticized Federal Reserve Chair Jerome Powell, urging for a swift termination and rate cuts. Trump highlights his dissatisfaction with Powell's policies compared to the European Central Bank, causing concern about the Fed's independence.

In a move that underscores his discontent with current monetary policies, U.S. President Donald Trump has taken to social media to express his desire for the swift termination of Federal Reserve Chair Jerome Powell. Trump has consistently criticized Powell for not reducing interest rates in line with the European Central Bank, urging immediate action.

The President's open critique sparked diverse reactions from economic experts. Jamie Cox of Harris Financial Group asserted that Trump seeks alignment from the Fed with his trade agenda, emphasizing the pivotal role of the US Dollar in global trade. However, Chief US Economist Christopher Hodge voiced uncertainty about Trump's willingness to oust Powell, suspecting increasing comfort with economic volatility.

Despite these tensions, some experts like Ross Bramwell from Homrich Berg doubt Trump will follow through on any removal, citing potential Republican resistance and public trust in the Fed's independence. While Trump's rhetoric may intensify, the consensus suggests Powell will likely remain until the end of his tenure.

(With inputs from agencies.)