Trump is likely to pursue the removal of Fed chair Jerome Powell, which ignites debate over the independence of the Federal Reserve in setting monetary policy. A proposed 3-percentage-point rate cut would place the Fed in a stimulative stance amidst low unemployment and rising inflation. This marks a pivotal moment in the U.S. relationship with central banking, echoing past conflicts. Despite the calls for cuts, including from Trump, the Fed's current rate of 4.4% aims to balance inflation, which is steadily lowering but still above target levels.
Trump's intention to fire Fed chair Jerome Powell could spark significant legal and political consequences regarding the control of monetary policy in the U.S.
The current target interest rate of 4.4% is considered restrictive by officials, aimed at reducing economic activity to combat inflation, which is gradually declining.
Collection
[
|
...
]