Trump's Ongoing Feud with Federal Reserve and Its Global Market Implications

President Trump has criticized Federal Reserve Chair Jerome Powell for not cutting interest rates, threatening Powell's removal. This ongoing tension raises concerns about the Fed's independence and potential impacts on global markets. Despite Trump's assertions, Powell plans to complete his term, emphasizing Fed's independence.

President Donald Trump launched a fierce verbal attack on Federal Reserve Chair Jerome Powell on Thursday, accusing him of "playing politics" by keeping interest rates steady. Trump claimed the power to quickly remove Powell, stating the Fed's rate decisions affect his political fortunes.

Trump's frustration with the Fed's interest rate policy mirrors his earlier confrontations with Powell, intensifying debates on the independence of the central bank. Private discussions about Powell's potential removal have included former Fed Governor Kevin Warsh, who advised against the action.

The prospect of Powell's dismissal has stirred concerns in global financial markets. Treasury Secretary Scott Bessent cautioned against destabilizing economic impacts, while Powell maintained the Fed's autonomy and focused on economic stability amid trade tensions.

(With inputs from agencies.)