Trump Turns Up the Heat on Fed’s Powell as Monetary Feud Escalates: Tariffs, Tensions, and Economic Turmoil
- Why Is Trump Targeting Fed Chair Jerome Powell?
- Trump’s New Tariffs: Bold Strategy or Political Gambit?
- Copper Tariffs Spark Industry Backlash
- Is the Fed’s Independence Under Threat?
- FAQ: Unpacking the Trump-Powell Feud
The White House intensifies its scrutiny of the Federal Reserve as President TRUMP publicly clashes with Chair Jerome Powell over interest rates, while simultaneously rolling out aggressive tariffs on allies like Canada, the EU, and Brazil. Economic advisor Kevin Hassett defends the moves as part of a "high-stakes strategy," but critics warn of escalating risks to global trade and domestic manufacturing. Meanwhile, the Fed’s $2.5B headquarters renovation faces backlash, fueling speculation about Trump’s authority to oust Powell.
Why Is Trump Targeting Fed Chair Jerome Powell?
In a fiery ABC interview, WHITE House economist Kevin Hassett confirmed that President Trumplegally fire Fed Chair Jerome Powell—but only for "cause," such as misconduct or neglect. This comes after Trump blamed Powell for "undermining the U.S. economy" with high interest rates, claiming they cost the nation "significant money" and hindered its global economic dominance. Despite Trump’s threats, Hassett clarified that dismissal isn’t imminent—though the administration is now auditing the Fed’s controversial $2.5B building project, hinting at deeper tensions.
Trump’s New Tariffs: Bold Strategy or Political Gambit?
On August 1, fresh tariffs hit imports from Canada, the EU, Mexico, and Brazil—including a, despite the U.S. trade surplus with Brazil since 2007. Hassett framed this as economic security: "We need onshore production," he told ABC, tacitly acknowledging the MOVE was partly retaliation for Brazil’s legal actions against Trump ally Jair Bolsonaro. Theslammed the tariffs as "self-inflicted wounds," warning they’d raise costs for critical goods like aircraft and ammunition.
Copper Tariffs Spark Industry Backlash
Atriggered outcry from manufacturers. Hassett downplayed concerns, citing low inflation and national security: "Copper is key for U.S. weapons systems," he argued. But industry leaders countered that domestic production can’t meet demand, risking supply-chain chaos. (Source:data shows copper futures volatility spiked 12% post-announcement.)
Is the Fed’s Independence Under Threat?
The White House’s sudden focus on the Fed’s budget—Hassett quipped it could "print money and throw it around willy-nilly"—has economists worried. With Trump’s dual offensive (monetary pressure + tariffs), the BTCC analytics team notes this could mark a "volatile chapter" for U.S. economic policy. As one veteran trader put it: "This isn’t just about rates—it’s about who controls the economic narrative."
FAQ: Unpacking the Trump-Powell Feud
Can Trump legally fire the Fed chair?
Yes, but only for specific causes like negligence or ethics violations—not policy disagreements.
Why target Brazil with tariffs?
Analysts suggest it’s tied to Brazil’s treatment of Bolsonaro, a Trump ally, despite the U.S. trade surplus.
How are markets reacting?
Copper futures swung wildly (per), while the S&P 500 dipped on trade war fears.
