Trump returns to criticize Powell and announces his efforts to the federal reduces the benefit economy

Declare Donald Trump Friday that he will appoint a chairman of the Council Federal Reserve Be a supporter to reduce Useful interest ratesThis raised serious questions about the future of the most influential monetary organization in the world.

“If you feel that someone will keep interest rates as they are, I will not help him. I will choose someone who wants to reduce interest, and there are many of them,” Trump said, “I will choose a person who wants to reduce interest, and there are many of them,” in a direct confirmation of his intention to replace the current “federal” president. Jerome Powell A person is closer to his political and economic orientations.

“Stubborn mule” and “stupid person”

In a remarkable escalation, Trump described Powell as a “stubborn mule” and a “stupid person” during a press conference on the sidelines of the Leaders’ Summit NATO A few days ago, adding: “We have a federal person who does not understand what is happening. The rate of his intelligence is low for what he is doing.”

These statements come at a time when the American economy is witnessing a clear slowdown in spending and consumption indicators, with a decline in Inflation In May, according to data published on Friday, but without this decline give the immediate green light to the federal to make a decision to reduce interest.

When is the date of change?

Although the state of Powell ends in May 2026, Trump is planning to block the road early. The treasury minister hinted Scott Bessent Until the president may announce the name of the new candidate during October or November, with the aim of assuming the position in January with the opening of the next seat on the board of directors.

But Besent tried to reduce the impact of the statements by saying in an interview with CNBC: “There is a possibility that the president will be a new president in January, but things are not decided yet.”

Is the federal in trouble?

Historically, American institutions clung to the principle of “federal independence” from any direct political intervention, but Trump blew up this context again, as he previously did in his first term, by launching a pressure campaign on Powell to reduce interest on the pretext that Monetary The current raises the cost of government borrowing.

The “federal” remained last week at the interest rates within the range 4.25%-4.5%, indicating that it is expected to be reduced by half a percentage point by the end of 2025, provided that the inflationary pressure associated with a decreaseCustoms.

But “Federal” officials warned in separate statements this week against rushing, noting that “more data is necessary to ensure that the fees will not create a long -term inflation,” which reduced expectations close to the next July meeting.

In a public testimony with the Financial Services Committee in the US House of Representatives, Powell stressed last week that the central bank will continue its caution in reducing interest rates, due to the blurring surrounding the effects of the new customs duties announced by Trump last April, which is known as a media as “Liberation Day”.

Powell said in his testimony that Monetary You should focus on inflation, stressing: “We do not comment on commercial policy, but when these policies have short or medium -term inflationary effects, we focus on anticipating their prices on prices.”

A controversy expands … and open questions

Trump’s sharp criticism of Powell opened the door wide to a constitutional and economic debate:

• Will these pressures be undermined the independence of the Federal in the future?
• Will monetary policy decisions be hostage to political conflicts?
• Will Congress approve the appointment of a “obedient” president of Trump’s desires to reduce interest, whatever the circumstances?

In this context, economic expert Mary Williams of Georgetown University said that “public political intervention in the federal work undermines the credibility of American monetary policy against global markets,” warning that “short -term returns may come at the expense of long -term stability.”