Former US President Donald Trump has once again taken aim at Federal Reserve Chair Jerome Powell, this time accusing him of "disastrous" monetary policies that could destabilise the US economy. In a fiery statement, Trump claimed Powell's decisions were "politically motivated" and warned of dire consequences for American households.
A History of Tension
The public spat marks the latest chapter in a long-running feud between Trump and the Fed chief. While Powell was originally appointed by Trump in 2018, relations soured as the President repeatedly pressured the central bank to cut interest rates during his administration.
Economic Experts Respond
Financial analysts are divided on Trump's latest outburst. Some suggest his comments could undermine confidence in the Fed's independence, while others argue it reflects growing concerns about inflation and economic stability.
"The Federal Reserve walks a delicate line," noted economist Dr Sarah Chen. "Political interference, even from former presidents, can make their job significantly harder."
What This Means for Markets
The controversy comes at a sensitive time for financial markets, with investors closely watching for any signs of policy shifts. The Fed's next interest rate decision could prove pivotal for both the US and global economy.
Market analysts suggest Trump's intervention might:
- Increase volatility in bond markets
- Put additional pressure on the dollar
- Create uncertainty for businesses planning investments
As the political and economic drama unfolds, all eyes remain on the Federal Reserve's next move and whether Powell will respond to his high-profile critic.
