US central bank
Trump: Board is supposed to withdraw FED boss control
The US President does not let go of the central bank boss. The Central Bank Council showed dial at the latest interest decision. That and another development are just right.
After the most recent interest rate decision by the US Federal Reserve Fed, US President Donald Trump continues his verbal attacks on her boss Jerome Powell. The Republican worked on his platform Truth Social on Powell and once again described him as “stubborn fool”. At the same time, Trump demanded that the FED board “take control” if the central bank boss continues to refuse to “clearly” reduce the key interest rate.
The head of the Federal Reserve does not only make decisions about the key interest rate alone – the Central Bank Council is responsible for this. At the most recent decision on Wednesday it was striking that, in contrast to the previous session, not all members were behind maintaining the key interest rate. Two of eleven representatives present – Michelle Bowman and Christopher Waller – pleaded for a reduction. Different voices rarely occur in this Fed committee.
Waller is said to be close to Trump. In addition to Finance Minister Scott Bessent, the US President should consider him as possible successor to Powell. Observers consider it conceivable that under the pressure of Trump, further members of the committee could settle the majority of the committee at the next decision. The US President should speculate on this effect. The votes would “only get stronger,” he wrote at Truth Social.
The chances of countering votes could now actually increase: On Friday afternoon (local time), it became surprisingly known that FED board member Adriana Kugler, which is also located on the Central Bank Council. She wanted to take off her office on Friday with effect next week, it said.
A little later, Trump said to journalists that he had just found out that he had a free place on the central bank. “I’m very happy about that.” The president opens up the opportunity to influence this important committee. He nominates the board members who make up the majority of the Central Bank Council. However, the Senate still has to agree to the nomination.
Trump: Powell should also step down
Powell was supposed to step down just like Kugler, Trump asked Truth on Truth. Kugler knew that Powell had done the wrong thing about the interest rate, Trump claimed. “He should also step down!”
Despite the vehement demands from the White House, the FED continues to keep the key interest stable – it is currently in a range between 4.25 and 4.5 percent.
Because Trump has not yet received what he is asking for, he has repeatedly sharply attacked Powell in the past few months and threatened to dismiss them several times. However, the legal hurdles for such a step are high. It is not legally clarified whether a US President can settle the head of the central bank at all. Powell’s term of office ends next May.
dpa
Source: Stern
