The reply was a marked break from the recent past in which Trump proclaimed that Powell's "termination cannot come soon enough" and that he was a "major loser" who is "Mr. Too Late" when it comes to reducing interest rates — even accusing Powell, with no evidence or examples, of manipulating interest rates in 2024 to hurt his presidential campaign. In those situations, the Fed generally raises rates, and reduces borrowing and spending, to try to force price stability, which tends to come at a cost of higher unemployment and slower growth. Complicating any potential move to fire Powell would be the fact that no president has ever removed a Fed chair before the end of their term, and current law doesn't actually provide a legal mechanism to do so, as part of ensuring the central bank maintains its independence from politicians who might seek to manipulate rates for election season.
Author: Matthew Chapman
Published at: 2025-04-22 22:36:45
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