United States President Donald Trump accused on Thursday (17) the president of the Federal Reserve, the US Central Bank, Jerome Powell, of acting politically against his government.
“He will leave (the position). If I ask, he will leave. I do not think he is doing a good job. Always very late. If I want, he will leave. Believe me,” said Trump.
The US president has pressured the monetary authority to lower the country’s basic interest rate stating that retail prices are falling and trade tariffs are making the United States richer.
Trump has classified the Fed’s decision to keep interest rates parked on the current level as a “complete mess.”
The discourse contrasts with the tradition of US monetary policy, which defines a four -year term to Central Bank presidents. The stability of the position allows the leader to make politically difficult decisions, with the purpose of preserving the purchasing power of currency and ensuring full employment in the country.
Still, Trump has already shown the willingness to dismiss employees with these same guarantees. This is the case of two directors of the Federal Commerce Commission. The decision came to the Supreme Court, where one of the judges granted a favorable injunction to layoffs until the plenary decides the merit of the complaint.
It is still unclear whether Trump’s threats against the Fed President are for real, or just distraction at a politically sensitive moment. Either way, the White House adds another component of uncertainty in a scenario marked by the unidesting of the United States trade policy. Attacks penalize the confidence of economic agents in the asset who, so far, are considered the safest in the world: US Treasury titles.
Jerome Powell’s mandate only expires in May 2026 and he has publicly said that he does not intelver to resign, despite pressure from the White House.
It was Donald Trump himself who nominated Powell to the presidency of the Central Bank, in 2018. Four years later, Joe Biden kept him in office.
On Thursday, European Central Bank President Christine Lagarde came out in defense of Jerome Powell and the independence of the Fed.
“Let me be Clara: I have a lot of respect for my estimated colleague and friend, Jay Powell. We have a solid and constant relationship between central bankers,” said the monetary leader.
