Trump's Power Struggle with the Federal Reserve Intensifies

President Donald Trump has called for the Federal Reserve's board to usurp the authority of Chair Jerome Powell over interest rate policy. Trump criticized Powell for not cutting rates and suggested the board take control if Powell doesn’t act. The president argues that rate cuts would boost growth.

Devdiscourse News Desk | Washington DC | Updated: 02-08-2025 07:37 IST | Created: 02-08-2025 07:37 IST

Trump's Power Struggle with the Federal Reserve Intensifies — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Country:
United States

In a dramatic escalation, President Donald Trump on Friday demanded that the Federal Reserve board wrest control from Jerome Powell, critiquing the central bank chief for not reducing short-term interest rates.

Trump utilized his Truth Social platform to label Powell as 'stubborn,' as their confrontation over economic policy intensifies. Despite branding the U.S. economy as thriving, Trump insists rate cuts would further elevate growth.

As Powell holds the benchmark rate while assessing tariff impacts, Trump argues for substantial cuts. With a slowing job market and economic uncertainty looming, the battle for Fed control marks a pivotal moment in Trump's presidency.

(With inputs from agencies.)