The president of the United States, Donald Trump, continues to try to blame others for the economic chaos that he has unleashed with his erratic economic and commercial policy. This Thursday has lashed out again from Truth, his social network, against one of his propitiatory victims, the president of the Federal Reserve, Jerome Powell, stirring the ghost of dismissal. “Powell’s cessation can’t get quick enough,” Trump said. The law does not allow the president of the United States to fire Powell ahead of time, but in the authoritarian drift of his second mandate, the law is not always an obstacle to Trump. “The ECB (Even eggs!) They have lowered and the United States is enriching with tariffs. The word used is not clear if it refers to the expiration of your mandate or the hypothesis of a dismissal. “An independent federal reserve is vital for a healthy economy, something that Trump has shown that it is not a priority for him,” criticized the leader of the Democrats in the Senate, Chuck Schumer.powell, in reality, he did not published any report on Wednesday, as Trump says. What he did was give a speech and answer some questions in an intervention in the Chicago Economic Club. There it made it clear that the measures taken by Trump, especially with their wild tariffs, are complicating the achievement of the two objectives of the Central Bank: full employment and price stability. The US economy grew at a good pace and was on its way to completing a successful soft landing, controlling inflation without causing a destruction of employment or a recession, when Trump came to power. Since then, their measures have weighed growth and inflation expectations have shot at the imposition of tariffs. That is precisely what makes the monetary policy committee difficult to continue lowering interest rates as it did between September and December last year. The Central Bank has repeatedly warned of the increase in uncertainty. Powell expressed Wednesday in his speech that more “clarity” is needed on the impact of Trump’s measures before moving interest rates. That discards in practice a reduction at the meeting on May 6. His warnings about inflation also leave in the air the possibility of a cut in June. At the same time, the president of the Fed said that he did not see the need for an intervention in the face of market instability because, in his opinion, they are working properly despite the high volatility and distortions generated by Trump himself. The distrust generated by its measures caused the dollar to weaken and the profitability required to the treasure bonds, losing their role of refuge in the face of the drops. Toget, the markets received with fall the words of the person responsible for monetary policy. Donald Trump and Jerome Powell in 2017, when he proposed as president of the Federal Reserve. dismiss you in advance. The Secretary of the Treasury, Scott Besent, has expressly supported the independence of the Central Bank in setting interest rates. Powell was named by Trump himself in 2018 and his mandate was renewed in 2022 by Joe Biden. In his first mandate, Trump already made him scapegoat with demand demands while undertaking his first commercial war, in 2019.Powell made it clear from the beginning that Trump cannot fire him and that he will not resign from his responsibility ahead of time, but the president of the United States has already fired other members of independent agencies with questionable legality decisions. The president of the Federal Reserve has insisted again and again on the importance of maintaining its independence and that their decisions are not guided by politics. The last of them was this Wednesday in Chicago. “We will never be influenced by any political pressure. People can say what they want. Nothing happens. It is not a problem. But we will do what we have to do without taking into account political factors or any other foreign factor,” he said in the question shift. Trump does not keep coherence in his criticism of Powell. In October, he said that he had reduced “too” the guys when he approved in September a cut of 0.5 points. When the president was Joe Biden, he accused him without the basis of wanting to lower interest rates to favor democrats in the elections. Now that he has returned to the White House, he criticizes him for not having dropped them before. (Tagstotranslate) Economics
