The article discusses the tension between President Trump and Jerome Powell, the head of the Federal Reserve, particularly regarding interest rates and inflation. While Trump expresses frustration over the Fed's reluctance to lower rates to stimulate growth, analysts note this could threaten the bank's political independence designed to insulate it from external pressures. Historical context is provided, showing previous instances where the Fed made tough decisions to tackle inflation. The potential consequences of undermining the Fed's authority could lead to a loss of investor confidence, affecting the overall economy.
"The leader of America's central bank, the Federal Reserve, is supposed to guard against rising inflation, which economists say may be imminent."
"Trump has mused in recent days about ousting Jerome Powell, the head of the Fed, although yesterday the president said he had no intention of firing him."
"Trump's talk infringes on the central bank's longstanding political independence... lawmakers hoped to shield it from political influence."
"In the end, the markets might hold back Trump more than the law does."
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