President Donald Trump again aims at the president of the federal reserve Jerome Powell, demanding his immediate resignation while tensions on interest rate policy end. Trump is furious that Powell has not reduced the prices, blaming the Fed for the increase in debt restraint costs which, according to him, is the American economy.
His frustration has intensified after Powell suggested that Trump’s prices contribute to inflation, which makes Fed more difficult for the Fed to justify drops in rate. Trump quickly retaliated, accusing Powell of being economic recovery.
Trump amplifies resignation requests
The situation intensified when Bill Pulte, head of the Federal Housing Finance Agency, accused Powell of lying during the testimony of the Senate and acting with political prejudices. Trump republished Pulte’s remarks on social networks and doubled his request that Powell immediately withdraws.
This leads to the big question: will Trump draw Jerome Powell?
Can Trump draw Powell? Legal obstacles remain
Although Trump has already threatened to remove Powell, experts say that the legal path is not so simple. The Supreme Court has strengthened that the independence of the federal reserve is protected and by force the president of the Fed before the end of his mandate could face major legal challenges.
When does the end of Jerome Powell end?
Jerome Powell is currently serving a four -year term as president of the Federal Reserve, which began in May 2022. His mandate should end in May 2026. Unless he voluntarily resigned, Powell is legally protected from dismissal without cause, making Trump threats more political than practical.
Powell blames the prices, Trump blames Powell
Powell has repeatedly stressed that the current pricing policies introduced by Trump cause inflationary pressure. This gives the Fed the reason to remain cautious by rate reductions, whatever political demands. Some analysts look at a possible price expiration towards July 9, which can create room for the Fed to relieve its position – but it is far from guaranteed.
Analysts and crypto experts join the criticism
Pressure is not limited to politics. Crypto Matt analyst criticized Powell’s refusal to reduce rates, noting that inflation is already close to the 2% target of the Fed. He compared it to the previous electoral years when the rate drops were more aggressive and suggested that Powell’s current position could be politically influenced.
Bitcoin Price reacts that Bitcoin jumped 2.62% more than $ 108,000 following the political drama, signaling market sensitivity to the uncertainty of Fed policy. Although Powell’s resignation is still unlikely, the growing war of words between Trump and the Fed maintains both traditional and cryptographic markets on the edge.
