Trump vs. Powell: A Clash on Federal Reserve Policies

Former President Donald Trump criticized Federal Reserve Chair Jerome Powell, expressing frustration over interest rate policies and suggesting his removal. Financial experts warn against such actions, noting potential damage to market confidence and the U.S. dollar. Despite Trump's repeated criticisms, experts doubt he will take action to remove Powell.

U.S. President Donald Trump has once again publicly criticized Federal Reserve Chair Jerome Powell, expressing impatience with his leadership and calling for immediate interest rate cuts. Trump's ongoing dissatisfaction with Powell's decisions was voiced on his social media platform, Truth Social.

Industry experts weighed in on Trump's comments, warning that any attempt to remove Powell could jeopardize market stability. Jack McIntyre, a portfolio manager at Brandywine Global, cautioned against appointing a new Fed chair who might dangerously alter financial policies. Jamie Cox, Managing Partner at Harris Financial Group, emphasized the importance of supporting the U.S. dollar through prudent fiscal policies.

Despite Trump's criticism, analysts like Rohan Khanna from Barclays and Christopher Hodge from Natixis believe that the Federal Reserve will continue its independent trajectory. Trump's remarks have sparked varied reactions, but the financial sector largely expects Powell to remain in his position until the end of his term.

(With inputs from agencies.)