Trump's Clash with Fed Chief Powell: Independence Under Fire

U.S. President Donald Trump has criticized Federal Reserve Chair Jerome Powell for not lowering interest rates, although he stated he is not planning to fire him. Despite the lack of evidence, Trump raised issues with Powell's management of Fed renovations. These tensions could impact the Fed’s independence and economic stability.


Devdiscourse News Desk | Updated: 17-07-2025 05:06 IST | Created: 17-07-2025 05:06 IST
Trump's Clash with Fed Chief Powell: Independence Under Fire
Donald Trump

President Donald Trump intensified his critique of Federal Reserve Chair Jerome Powell, renewing calls for lower interest rates. Trump confirmed discussing Powell's possible dismissal with Republican lawmakers, although he refuted reports of an imminent removal. Trump's remarks have sparked concerns over the Fed's independence amid renovation controversies.

The possibility of firing Fed Chair Powell has raised alarm among economists and lawmakers, with Republican Senator Thom Tillis warning that such a move could undermine U.S. financial stability. Trump blames Powell for higher interest rates, which he sees as detrimental to government borrowing costs.

Despite the tensions, key Republicans downplay the chance of Powell's removal. However, Trump's continued pressure threatens to challenge the Fed's ability to maintain economic stability. Analysts fear that such political interference could lead to increased market volatility and further complicate inflation management.

(With inputs from agencies.)

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