Trump's attacks on Powell threaten the Fed's independence. Here's why it matters

Trump’s attacks on Powell may threaten the Fed’s independence. Here’s why it matters.

Most economists worry that an assault on the Fed’s long-standing independence from politics would further disrupt markets and add to the uncertainty enveloping the economy.

Trump’s attacks on central bank threaten its independence. That isn’t good news for inflation. • Kansas Reflector

U.S. President Donald Trump looks on as his then-Fed chair nominee Jerome Powell steps to the lectern. (Drew Angerer/Getty Images)Nearly every country in the world has a central bank — a public institution that manages a country’s currency and its monetary policy. And these banks have an extraordinary amount of power. By controlling the flow of money and credit in a country, they can affect economic growth, inflation, employment and financial st…

Why Trump’s Attacks on the Fed Are Bad News for the Economy

When monetary policy becomes political, everyone loses.

The independence of the Fed is at the heart of all fears for the next few days. ...

There is an open conflict between Trump and the president of the Fed, whom the U.S. president is threatening to remove, but he is currently facing the independence of the central bank, which is protected by Supreme Court jurisprudence.

Trump vs. Powell: Power Struggle at the Heart of U.S. Economic Policy

On April 17, 2025, President Donald Trump publicly demanded the removal of Federal Reserve Chair Jerome Powell, accusing him of failing to cut interest rates and suggesting he could dismiss him before his term ends. Trump’s statements, delivered through social media and Oval Office remarks, followed Powell’s warnings that Trump’s tariff policies could drive up […]