Hey everyone, exciting and controversial news is hitting the headlines! U.S. President Donald Trump has sparked debate by insisting he could force out the head of the independent Federal Reserve, Jerome Powell, if he so wished.
During a recent briefing at the White House, Trump made it clear he wasn’t happy with Powell, saying, "I'm not happy with him. I let him know it and if I want him out, he'll be out of there real fast, believe me." He also repeated his call on his social media platform, Truth Social, demanding that Powell lower interest rates. Bold words indeed!
But here’s the twist: although Trump claims he can dismiss Powell, the president does not have direct authority to fire a Fed chief. Instead, any move to unseat Powell would involve a lengthy process to prove there was cause. This ongoing power tussle highlights the tension between political pressure and the independence of financial institutions.
Powell recently warned that sweeping tariffs on almost every trade partner could force the Fed to choose between managing inflation and addressing unemployment. For tech-savvy folks and startup enthusiasts across South and Southeast Asia—from bustling hubs in Bengaluru to innovative centers in Jakarta—these shifts in U.S. monetary policy can send ripples across global markets, influencing everything from digital payments to the economy at large.
While Powell has pledged to serve out his full term, Trump's fierce rhetoric has left investors and governments worldwide on alert. What do you think? Is this just talk, or could we be witnessing a real shake-up in U.S. economic policy? Let us know your thoughts! 😎
Reference(s):
Trump insists he could force out independent Fed Chair Powell
cgtn.com
