Trump criticized Federal Reserve Chairman Powell again today (on Beijing time June 21st). Trump wrote: "'Too late' Powell complains about the cost, most of which was caused by Biden's fake 'government', but the best thing he can do for our country is to help lower interest rates. If he lowers the interest rate to the level it should be, that is 1% to 2%, the 'idiot' could save up to 1 trillion US dollars for the United States every year. I completely understand that my strong criticism makes it harder for him to do what he should do, which is to lower interest rates, but I have tried various ways. I was once friendly, once neutral, and once vicious, but being friendly and neutral didn't work! He is a fool, an obvious Trump hater, and shouldn't be there. I listened to the wrong people, and Biden shouldn't reappoint him. We hardly have inflation, our economy is performing very well, and with the influx of tariff revenue and the construction of factories across the country, it will soon be better than ever before. If he is worried about inflation or any other problems, all he needs to do is lower the interest rate, so we can benefit from the interest cost. When these 'other factors' appear in the future (I doubt they will appear!), then he can raise the interest rate. Don't tell me you think there will be inflation at some point in the future because there isn't now, and if there is, just raise the interest rate! We should be at the top of the list in the attachment, not at the end. I don't know why the Board doesn't dismiss this complete fool! Maybe, maybe I need to change my idea of firing him? But anyway, his term will end soon!
[Smart Comment]: Trump's exaggerated remarks once again highlight his impulse to politically intervene in monetary policy. However, precisely due to the institutional design of "idiots cannot be fired arbitrarily", the Federal Reserve has been able to maintain its independence and credibility as the most important central bank in the world. The dollar became the global anchor currency not because of the president's arbitrary instructions, but because of the system's constraints on presidential power. Moreover, if the U.S. went to war under high interest rate conditions, debt would rise rapidly, and the economy would face the risk of collapse. In a way, Powell has curbed Trump's government's impulse to go to war and maintained economic stability.
Original source: https://www.toutiao.com/article/1835497398029320/
Disclaimer: This article only represents the author's personal views.