Trump's Conflict with Fed Chair Powell: A Political Tug-of-War Unfolds
President Trump has denied plans to fire Federal Reserve Chair Jerome Powell despite frequent criticism. The issue has caused market fluctuations and debate within political circles. Republican Senator Thom Tillis has defended the Fed's independence, warning that firing its chair would undermine U.S. financial stability.
Amidst swirling speculation, President Donald Trump has confirmed he is not planning to dismiss Federal Reserve Chair Jerome Powell. Despite sharp criticism directed at Powell for not lowering interest rates, Trump denied Bloomberg's report suggesting an imminent firing, which had unsettled financial markets across the board.
Market resilience followed as stocks pared their losses, with Treasury yields retreating from earlier heights. Trump's ongoing criticism of Powell, which he vocalized anew, emphasizes his dissatisfaction with the Fed chief's handling of interest rate cuts.
Republican Senator Thom Tillis, defending the Federal Reserve's independence, cautioned against the politicization of the central bank, warning that removing Powell could endanger U.S. economic credibility. Meanwhile, as the Treasury Secretary identifies candidates to potentially succeed Powell, the Fed's leadership remains a focal point of intense political scrutiny.
(With inputs from agencies.)
Google News