US President Donald Trump has publicly threatened to fire Federal Reserve Chairman Jerome Powell. The reason was disagreement over the country's interest rate policy.
Trump increases pressure on the Fed
President Donald Trump said he was considering dismissing the head of the Federal Reserve Jerome Powell. The reason for this was the Fed's unsatisfactory actions on interest rates, according to Trump. Trump stressed that Powell was not responding appropriately to economic challenges and was not cutting rates as required by the administration.
This statement came amid growing tensions between the White House and the US central bank. According to Trump, the Fed's policy could have a negative impact on the country's economic growth.
Reaction of the Fed and financial markets
The Federal Reserve has not yet officially commented on the president's threats. At the same time, financial markets are closely monitoring the situation, as the Fed's independence is key for investors and the stability of the dollar.
Analysts note that such statements may cause volatility in the markets. It remains to be seen whether any real steps will be taken to change the Fed's leadership.
Interest rate policy context
The Fed has recently kept its key policy rate at the current level, despite the administration's calls for a cut. Trump has repeatedly publicly criticised Powell for being cautious in his monetary policy, believing that it is holding back economic development.
Internal discussions about the Fed's independence and the influence of the executive branch on the central bank's decisions remain a subject of debate among experts. Further developments may affect the macroeconomic situation in the US. Read more about US politics in the Economics section.
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