One thing’s certain: Donald Trump has a plan.
A plan he intends to see through, even if it puts the US economy under pressure for a while.
But someone is standing in his way, and it’s not just anyone.
I’m talking, of course, about Jerome Powell, chair of the Federal Reserve.
And this is where things get messy.
An open confrontation
Trump accuses the Fed of holding the economy back by keeping interest rates too high.
In his view, inflation is no longer a threat. It’s Powell’s lack of action that could cause a real slowdown.
On Monday 21 April 2025, he didn’t hesitate to say so publicly.
The impact of his words was immediate:
- The S&P 500 fell 2%
- The dollar continued to slide
Two opposing views and goals
On one side, Donald Trump wants rates cut immediately.
He’s piling on the pressure, attacking Powell in his speeches and pushing his advisers to explore replacing him.
On the other, Powell is sticking to his position. He wants inflation under control before cutting rates, and he doesn’t seem ready to give in.
This confrontation is damaging the United States’ reputation for economic stability.
The message is clear: confidence is falling and tensions are rising.
And as I wrote last week, Treasury yields keep climbing, a sign that investors are looking for something stable amid all this uncertainty.
What are the options?
If Powell is the only obstacle, can Trump fire him?
Not really...
The Fed chair can only be removed for cause, and Powell has already held his ground through much tougher situations:
- The COVID crisis in 2020
- Post-COVID inflation in 2021
- The threat of a banking crisis in 2023
Trump could try to push him into resigning, or strip him of the chairmanship without removing him from the board.
But that would be legally risky and completely unprecedented.
One to watch.
The cover image is entirely inspired by mpoozd’s post on Reddit.