Trump's Fed Showdown: The High-Stakes Clash with Powell

President Donald Trump intensifies his attacks on Federal Reserve Chair Jerome Powell, pushing for interest rate cuts and threatening Powell's position. Trump's aggressive stance emphasizes the potential political impact on global markets. The clash raises concerns about the Fed's independence amid rising tariff-related economic pressures.

President Donald Trump has ramped up his criticism of Federal Reserve Chair Jerome Powell, accusing him of 'playing politics' by refusing to cut interest rates. Trump's attacks come as interest rates on home mortgages and consumer credit remain high, despite rising inflation risks from Trump's tariff policies.

In an intense public confrontation, Trump suggested he had the power to swiftly remove Powell from his role, a move that could destabilize financial markets. Meanwhile, Powell, supported by the Fed's long-standing commitment to policy independence, shows no intention of stepping down before his term ends in May 2026.

The controversy highlights a broader concern over potential political interference with the Fed, as global economic instability looms. Policymakers warn that tampering with the Fed's autonomy could hurt its credibility, with significant market implications if Trump pursues Powell's dismissal.

(With inputs from agencies.)