US EditionJerome Powell Must Quit to Save the Fed, One Prominent Economist Says
UNITED STATES, JUL 22 – El-Erian warned political attacks on Powell risk undermining Federal Reserve independence and credibility, with threats potentially causing market instability and economic harm.
- In July 2025, prominent economist Mohamed El-Erian publicly urged Jerome Powell to step down from his role as Chair of the Federal Reserve amid escalating political challenges.
- El-Erian argued that continued tension between President Trump and Powell threatens the Fed's independence and could involve more elements of the institution.
- Powell has firmly stated he will complete his term, which expires in May 2026, despite attacks from Trump and calls for resignation from some critics.
- El-Erian cautioned that compromising the Federal Reserve’s independence could erode public confidence, potentially causing the dollar to lose value, pushing borrowing costs upward, and increasing economic instability.
- The dispute suggests possible instability for US monetary policy, as consensus on Powell’s departure diverges and calls grow for protecting the Fed’s nonpartisan decision-making.
Insights by Ground AI
Does this summary seem wrong?
20 Articles
20 Articles
Central bank independence and credibility matters. Here’s why
Olga Kashubin/ShutterstockIn the United States, President Donald Trump has been pressuring the chairman of the US Federal Reserve, Jerome Powell, to slash interest rates. This is partly to ease the interest payments on the ballooning US government debt. Powell has so far resisted, but Trump has also threatened to replace him with someone who will do what he asks. In Australia, after the Reserve Bank’s surprise decision to hold interest rates ste…
US President Trump wants to drop Fed boss Jerome Powell, but Wall Street has supported the chief banker so far. With Mohamed El-Erian, a well-known economist now demands Powell's withdrawal. He probably has different reasons than Trump.
·Germany
Read Full Article
Coverage Details
Total News Sources20
Leaning Left4Leaning Right2Center12Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 22%
C 67%
11%
Factuality
To view factuality data please Upgrade to Premium
