Donald Trump tries to turn Jerome Powell, the president of the American central bank – Liberation
It’s simple: if we don’t obey Donald Trump, we get out. The president of the American central bank (Fed), Jerome Powell, attracted the wrath of the American tribune by refusing to access his request to lower the interest rates of the institution. As a result, the government is now studying the possibility of dismissing the banker, the main economic adviser in the White House said this Friday April 18. « I’m not happy with him. I let him know and if I want him to leave, he will go quickly, believe me ”, Assured Donald Trump the day before in the oval office. It was he who had named him at the head of the Fed, During his first term in 2018.
« The president and his team will continue to look at the issue » To dismiss Jerome Powell, journalists told the director of the National Economic Council, Kevin Hassett, while Donald Trump reiterated his attacks on the Fed boss on his interest rate policy on Wednesday. « It is more than time that Powell’s mandate ends, » wrote the billionaire on his Truth Social platform, although the second mandate of the president of the Fed had to end in May 2026. The interested party said in early April having intended to « Stay in post until the end of (sound) mandate » in 2026.
Donald Trump today accuses the Fed chief of politicizing the American central bank. It was Joe Biden who renewed it, in 2021, for a second term. Last August, in the middle of the electoral campaign, Donald Trump threatened the agency’s independence, suggesting that the White House could have his say regarding monetary policy. The American president does not have the power to read the Fed patterns directly. To try to remove Jerome Powell, Donald Trump should start a long procedure and prove that the latter has committed a serious fault.
If it is not uncommon for the American presidents and the Fed patterns to oppose the monetary policy to follow, any attempt to dismiss Jerome Powell of his functions would be unheard of in contemporary American history. Donald Trump wants him not to have « Lowned interest rates for a long time already, like the ECB », the European Central Bank, and encourages it to « Do it now».
ECB officials, who meet every six weeks, have just agreed on a drop of 0.25 points in guiding rates To strengthen the economy of the euro zone. Its president, Christine Lagarde, said Thursday, April 17, that the ECB was to « To face the unpredictable » and show up « agile », judging impossible to engage in advance on a rate trajectory in the uncertain context of trade war carried out by the United States. She also posted her solidarity with her counterpart from the American Central Bank, for whom she said he had « Much respect ».
« We don’t need his compliments to act and know what is right, » For his part, the governor of the Banque de France, François Villeroy de Galhau interviewed the statements the day before Donald Trump who asked the Fed to be inspired by the BCE on the drop in interest rates. « I think he is wrong », Also said the French banker about the criticisms made by President Trump against Jerome Powell on his slowness to lower rates. The president of the Banque de France stressed the importance of the independence of central banks and the specific situation in the United States, which may experience an inflationary outbreak because of the trade war launched by Donald Trump. « The less credible American policy, the more monetary authorities must be », estimated François Villeroy de Galhau, asked about the great volatility of the financial markets since The launch of the trade war Launched by Donald Trump.
The customs duties of the American president place the federal reserve in a situation « Complicated », Jerome Powell said on Wednesdaybelieving that these surcharges were going « Most certainly lead to at least a temporary increase in inflation ». « Oil prices are decreasing, the amount of races (even eggs!) Also, and the United States enriched thanks to customs duties », The American president replied early Thursday, for whom the boss of the Fed « Is always too slow and is always wrong ». The republican leader had already urged Jerome Powell on April 4 to lower interest rates, believing that it would be « The perfect moment ».
The Fed has maintained its main stable rates, between 4.25 % and 4.50 %, since the start of the year. The drop in oil has slowed down inflation in Marchwith the consumer price index which fell 0.1 %, after an increase of 0.2 % in February. The index was pulled down by lower prices at the pump: -6.3 % over a month and -9.8 % over one year. This has confirmed the White House in its customs policy, while economists plan a revival of inflation due to the new customs duties set up by Donald Trump.
However, in March, the surcharge on products imported into the United States had not all entered into force. Since then, and despite spectacular reversals, the United States strikes foreign products of 10 % additional customs duties, and those from China with a punitive surcharge of 145 %.
