A new attack against the president of the Fed. On Saturday, September 27, Donald Trump posted on his social network, the social truth, a drawing that will say goodbye to Jerome Powell whom he has reproached for months not to reduce rates quite quickly.
“You are fired!” (“You are fired!” In French), he exclaims the US president in this cartoon. In front of him: the Fed pattern carries a box with its belongings inside.
This “you are fired” is one of Donald Trump’s favorite slogans who had the opportunity to repeat it several times when he participated in the reality show “The Amprentice” that made him famous. Transmitted in the 2000s, this program presented the former entrepreneur in the process of approving work interviews with candidates who wish to integrate one of their businesses.
The independence of the threatened Fed?
In recent months, Donald Trump has multiplied the attacks against Jerome Powell that nicknamed “too late” (“too late”). And for a good reason, the US president criticizes the Chief of the Fed for having arrived too late in the softest of monetary policy.
It is true that key rates were reduced in September for the first time of the year, but in a way considered Timoré by Stephen Miran, new governor of the Fed promoted by Trump. As a reminder, the rates that households eliminate to borrow to consume and companies to invest, feed growth, but at the risk of relaunching inflation.
According to Powell, the Fed maintains a data guided policy and resists pressure. But Trump tries to place loyal candidates and seeks to revoke Governor Lisa Cook, a case presented to the Supreme Court. Repeated aggressors against the institution that features have aroused about their ability to maintain their independence:
“The monetary policy of the Federal Reserve must remain completely independent of any political influence. Including President Trump,” said Kevin Hasett, the US economic advisor. “The independence of the Central Bank is something that Republicans, Democrats and the White House agree,” he said, emphasizing that “in countries where their leaders have had priority over the Central Bank, this leads to inflation and poverty for consumers.”
Source: BFM TV
