When it comes to President Trump, many people don’t like to do business with him, and that list includes Feds chairman Jerome Powell. Powell has been in the news from last few days because of his decision to increase interest rates even after getting a warning from president Trump. In a recent interview given Powell, he mentioned that Trump couldn’t fire him even if he wants to because it’s the law which has given him this power. From last many days, Trump administration and Feds are fighting each other because of their contradictory opinions about interest rates.
Trump administration who is convincing people of America that they have successfully controlled inflation and unemployment rate are now getting hit because Feds are trying to increase interest rate that will ultimately increase inflation. Due to such policies, Trump a few days ago bluntly said that he wants to fire Powell to make sure that inflation stays in control, but unfortunately, he doesn’t have that right. While talking over this issue, Powell said that he is protected by law which states that president of Fed has a tenure of four years long.
If we look into 2018, then Powell and other executives at Feds increased the interest rate four times in last year which concerned Donald Trump. Now some experts think intention of Trump might be real since no president would like to see his country’s inflation going up because of the Fed. Trump has been criticizing this decision of Powell from long period because accordingly, he thinks because of him Powell has got that position. Even if we don’t know the actual truth, it seems like the country might get affected because of this government vs. Fed fight. US is already getting a hit since it started a trade war with China.