In a fiery campaign speech that sent shockwaves through financial circles, former US President Donald Trump launched a scathing assault on Federal Reserve Chairman Jerome Powell, suggesting he would take severe action against the central bank chief if returned to the White House.
'Playing Politics': Trump's Fed Fury
The Republican frontrunner accused Mr Powell of preparing to cut interest rates for political reasons rather than economic ones, claiming the move would benefit President Joe Biden's re-election campaign. "He's going to do something to probably help the Democrats," Trump told supporters at a rally, suggesting rate cuts would improve economic indicators before November's vote.
Not the First Clash
This isn't the first time Trump has publicly criticised the Fed chair he originally appointed. During his presidency, Trump broke with longstanding tradition by repeatedly attacking Powell's monetary policy decisions, creating unprecedented tension between the White House and the supposedly independent Federal Reserve.
JD Vance in the Firing Line
In the same wide-ranging address, Trump turned his fire on Republican Senator JD Vance, a potential vice-presidential candidate. When asked about Vance's chances, Trump delivered a blunt assessment: "Not necessarily," he stated, reminding audiences that Vance had once been a fierce critic before becoming an ally.
Hyundai Faces Trump's Wrath
The former president also took aim at automotive giant Hyundai, threatening to impose massive tariffs on the South Korean company if it follows through with plans to expand manufacturing in Georgia. "They have to build that plant in the United States," Trump declared, vowing to slap a 100% tariff on every car the company sells stateside.
Market Jitters and Political Implications
Trump's comments about potentially replacing Jerome Powell sent ripples through financial markets, raising concerns about the independence of US monetary policy. Economic analysts warn that such rhetoric could create uncertainty about the Fed's ability to operate free from political pressure, potentially affecting global economic stability.
The broadside adds to growing concerns about how Trump might approach economic institutions and international trade agreements in a potential second term, with many observers predicting a more aggressive stance toward both domestic policy and foreign corporations.
