President Trump is once again unhappy with Federal Reserve Board Chair Jay Powell following Powell’s remarks at an economic event
President Trump is once again unhappy with Federal Reserve Board Chair Jay Powell following Powell’s remarks at an economic event in Chicago and following the move by the European Central Bank to cut interest rates.
On social media Trump posted, “Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Powell’s termination cannot come fast enough!”
Naturally, the kneejerk reaction among Trump’s enemies is to raise again the guidon of Fed independence which is vital and yet not at issue. Trump isn’t dictating monetary policy. He’s criticizing monetary policy, a criticism Powell will no doubt ignore.
To be sure, it would be less unsettling if Trump conveyed his displeasure with the Fed Chair as most presidents have done before — quietly, typically using an interlocutor such as the Treasury Secretary to deliver the message. But that’s not Trump’s way.
Regarding the policy, Trump is right. As Trump has acknowledged, his avalanche of tariffs is creating additional uncertainty and turbulence. The odds of a recession, while still low, have gone up in recent months.
Though inflation has ticked up a bit, this is surely temporary and soon to be reversed.
