Trump attacks Jerome Powell: Accusations of corruption and a threat to the Federal Reserve's independence

In a new escalation reflecting the deep rift between the executive branch and monetary policy in the United States, President Donald Trump launched an unprecedented and scathing attack on Federal Reserve Chairman Jerome Powell, describing him as “incompetent” or “corrupt.” These fiery remarks were not merely a passing criticism, but rather added fuel to the fire at a time of growing concern in global markets about the future independence of the US central bank, an institution long considered a bulwark of the global economy against political volatility.

Context of the attack: Inflation and interest rates

Trump's remarks to reporters came in response to questions about the impact of the Justice Department's criminal investigations on the Federal Reserve's credibility. The US president had foreshadowed this attack on his platform, TruthSocial, where he praised the recently released inflation data, describing it as "fantastic and low." Trump believes this data is conclusive proof that Jerome Powell has waited too long to cut interest rates, a measure the president has been strongly advocating to stimulate economic growth and make borrowing easier for businesses and individuals.

Criminal investigations: a political pressure tactic?

This verbal attack comes amid immense legal pressure on Jerome Powell. The Federal Reserve chairman revealed he has received subpoenas from a Justice Department grand jury, threatening criminal charges against him personally. Powell links these investigations to his previous testimony before the Senate Banking Committee last June, which highlighted massive financial irregularities in the $2.5 billion renovation and expansion project of the Federal Reserve headquarters in Washington. Observers believe the timing of these investigations raises questions about whether they are being used as leverage to influence monetary policy decisions.

The importance of federal independence and the impact of conflict

This confrontation is of paramount importance, transcending the personal feud between Trump and Powell; it strikes at the very heart of the American financial system. Historically, the Federal Reserve was designed to be independent of the White House to ensure that economic decisions are based on data, not short-term electoral interests. Attempts to directly influence or question the integrity of the Fed chair could lead to:

• Market confidence shaken: Investors worldwide rely on the stability of the dollar and US monetary policy. Any perception that the Federal Reserve is subject to political whims could lead to capital flight.
• Inflation risks: The pressure to lower interest rates without strong economic justification could lead to inflation rising again, harming the purchasing power of the average American.
• A dangerous historical precedent: While history has seen tensions between US presidents and Federal Reserve chairmen (such as the Nixon and Arthur Burns eras), the threat of criminal prosecution and public accusations of corruption represent a dramatic shift in the relationship between the two institutions.

In conclusion, the conflict between Trump and Powell remains a true test of the resilience of American institutions, as economists and decision-makers around the world await the outcome of this confrontation and whether the Federal Reserve will be able to maintain its independent monetary course amid these political and legal storms.