The president is eager for the Fed to speed up planned interest rate cuts and ease pressure on the economy amid deepening concern about his trade agenda.
The Fed, in turn, is preparing for a potential price shock driven by Trump’s tariffs, which would delay any rate cuts, even if the economy weakens.
But as the White House takes aim at the independence of agencies, Powell is unlikely to bow to being forced out, even if tensions with the White House were to hit a critical point before his term is up next year.
Ian Katz, director at Washington research firm Capital Alpha Partners, said he doesn’t expect Trump to try to fire Powell, given the turmoil it could cause for markets.
Even so, Katz warned, “given how aggressive Trump has been in asserting as authority so far this term, you can’t rule out anything.”
Read the full report at TheHill.com.
