Donald Trump has great power in the USA, but it formally does not reach monetary policy. The central bank, i.e. the federal reserve, is responsible for it. It is headed by Jerome Powell. On Saturday, the President of the United States once again mocked the head of the Fed, pressing on the reduction of interest rates.
“Almost everyone agrees that»The Fed should lower your feet rather sooner than later«. Too late Powell, a legendary man from being too late, probably it is twisted again – But who knows? ..? ” – wrote Donald Trump on his social media.
Click to go to the application
|
Donald Trump / Truth Social
In May, the Federal Reserve decided to maintain interest rates at the current level. The reason for such a decision is the FED notice increased inflation risk and deterioration of the situation on the labor market.
Already in April, Donald Trump appealed for cuts, calling the head of the Fed “great loser” And he suggested that he had a way to remove Powell from his position in the event of different decisions. Later, however, the US President reflected and stated that the president did not intend to “slow down”.
See also: Donald Trump straight to the head of the US Bank: Stop playing politics!
The head of the federal reserve is formally independent of the US president. Although the president nominates the chairman, the candidacy must be approved by the Senate. The chairman's term of office lasts four years and may cover more than one term, which further strengthens the office's independence.
The Fed acts as an independent institution, which means that its decisions regarding monetary policy – such as determining interest rates – are made without the direct influence of the government. The purpose of this independence is to ensure economic stability and monetary policy protection against short -term political pressure.
