President Donald Trump has amplified his attacks on the president of the Federal Reserve Jerome Powell in recent days.
Trump said on Thursday that he was “not happy” from Powell. Friday, the director of the national economic council, Kevin Hassett, said that the Trump team “would study” if the president could withdraw Powell. Later in the day, Trump criticized Powell for not lowering interest rates.
However, on Sunday, the Republican senator John Kennedy of Louisiana said on “Meet the Press” of NBC that he does not believe that Powell was going anywhere.
“I do not think that the president, no president, has the right to withdraw the president of the federal reserve,” said Kennedy.
“I think the federal reserve should be independent,” Kennedy continued, pointing out that Trump and Powell should “sit and have a hug and a hot cocoa cup and work”.
Powell previously said that he would not resign from president if Trump asked.
Kennedy, an ally of Trump, offered support to Powell.
“My experience with Jay Powell is that he has tiger blood,” he told NBC. “He will do what he thinks is fair, and he will not fall into history as president of the federal reserve which allowed inflation to become wild like a hare of March, and he will do what he thinks he must do.”
Last Wednesday, Powell said during a Chicago speech that Trump’s prices were “much greater than expected” and could cause higher inflation and economic slowdown.
Powell then declared that, for the moment, the federal reserve would wait to see how Trump’s economic policies take place before modifying interest rates.
“For the moment, we are well placed to wait for greater clarity before considering any adjustment to our political position,” he said.
In 2011, Powell was appointed by the president of the time, Barack Obama, to join the Council of Governors of the Federal Reserve. Powell became the chairman of the board of directors in 2018 after Trump appointed him for the role. In 2021, the president of the time, Joe Biden, renamed Powell as president, the Senate approving the appointment in 2022.
The current term of Powell takes place until May 2026.
Trump’s campaign against Powell is involved during the high uncertainty for the American economy.
The president’s pricing strategy – he made back and forth on the prices for longtime allies like Canada and Mexico, then delayed “reciprocal prices” high on the nations of the world – received a bipartite decline.
Trump has long said that prices will allow the United States to reduce its persistent trade deficit. And he has repeatedly stressed his conviction that prices trigger an American manufacturing renaissance.
In recent weeks, the volatility of the equity and bond markets has shaken many Americans. American adults are increasingly unhappy with Trump’s economic policies. The economy was a key advantage for Trump during the 2024 presidential race.
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