Ahmet yeniceri 
US President Donald Trump made a striking post on his social media account on Saturday directed at the Chairman of the Federal Reserve. In the image he shared, Trump humorously told Powell, ‘You’re Fired!’ This move reflects Trump’s long-standing criticism of Powell over interest rate policies.
Trump Criticizes Powell: “Slow and Inadequate”
Donald Trump frequently criticizes Powell for being cautious about lowering interest rates. In recent weeks, he tried to remove FED Governor Lisa Cook from the board over mortgage fraud allegations. He temporarily appointed Stephen Miran, Chairman of the White House Council of Economic Advisers, to fill the vacant seat. Analysts believe Trump aimed to exert political influence over the FED.
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FED’s Cautious Stance on Interest Rate Policy
In his August statement, Jerome Powell said that inflation risks were rising, while employment risks were falling. This statement reflects the Fed’s cautious stance. It also points to the interest rate policies frequently criticized by Donald Trump. The Fed made its first interest rate cut of the year in early September. It announced that further cuts could be on the agenda between October and December.
Powell Emphasizes Independence
Speaking at the Greater Providence Chamber of Commerce in Rhode Island, Jerome Powell emphasized the Fed’s independence:
“We do not consider political factors when making our decisions. What matters is implementing the policy that will best serve the public in the medium term. We don’t engage in debates; we just do our job.”
Donald Trump’s social media move also resonated in the crypto and financial markets. The president’s criticism of Powell is high on investors’ agendas regarding interest rate and monetary policies.