["Dummy, idiot, too stupid": The intense conflict between Trump and Federal Reserve Chair Powell]
This ranks among the most tense relationships in U.S. history between a president and a central bank governor. After returning to the White House, Trump repeatedly attacked Powell for failing to lower interest rates as quickly as he had hoped. As Powell prepares to step down to make way for Trump’s nominee, Kevin Warsh, Trump expressed shock over Powell’s appointment.
"He's a terrible Fed chairman," he said last July. "I'm surprised he was appointed." Yet it was Trump himself who nominated Powell in 2017, praising him then as "strong, resolute, and intelligent." Since his return to office, Trump has pushed for faster rate cuts, while the Fed has been monitoring the impact of tariffs. Whenever rates remained unchanged, he would lash out at Powell.
Last April, he nicknamed Powell "Too Late," claiming, "He won't be fired fast enough!" Thereafter, he frequently referred to Powell in media as "dummy," "idiot," and "fool." One post read: "Jerome 'Too Late' Powell has done something again! He's too angry, too foolish, too politicized—he doesn't deserve to be Fed chair."
He has cost the nation tens of billions of dollars and overseen one of the most corrupt renovation projects ever!" The two clashed directly over renovation costs. Trump claimed the cost was about $3.1 billion, while the budget was $2.7 billion. Powell shook his head.
Trump produced evidence, but Powell countered that the president had included a third building in the calculation. "That's a building under construction," Trump argued. "That's a building completed five years ago," Powell replied. When asked what would happen if the budget was exceeded, Trump said: "I'd fire him."
In early January this year, Powell released a video revealing that federal prosecutors might bring criminal charges against him for testifying before the Senate regarding the renovation project. Trump claimed he knew "nothing about it." Powell stated that this "unprecedented action" by the Department of Justice should be viewed within the broader context of the current administration's threats and sustained pressure. He said: "This is about whether the Fed can continue setting interest rates based on evidence and economic conditions—or whether monetary policy will instead be driven by political pressure or intimidation."
Afterward, Republican Senator Tillis said he would not support Warsh’s nomination during the investigation, calling it a "serious threat" to the central bank's independence. Once the Department of Justice dropped the investigation, Tillis expressed his expectation to support Warsh’s confirmation. Looking back, the conflict between Trump and Powell reflects the long-standing tension between American politics and monetary policy.
Original source: toutiao.com/article/1863948622874634/
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