US President Donald Trump shared a humorous image targeting Federal Reserve Chair Jerome Powell on social media on Saturday. The image shows Trump telling Powell, “You’re Fired!”
Trump has frequently voiced criticism of Powell, who has long been reluctant to cut interest rates.
The Fed cut interest rates for the first time this month and signaled that further cuts could be on the agenda in October and December. However, Powell maintained a cautious stance in August, stating that “in the short term, inflation risks are to the upside and employment risks are to the downside.”
Trump, for his part, accused Powell of being “incompetent” and “too slow.” He also recently attempted to remove Fed Governor Lisa Cook from the board due to mortgage fraud allegations and appointed Stephen Miran, Chairman of the White House Council of Economic Advisers, to fill the vacant seat. This move was widely interpreted as an attempt to exert political influence over Fed decisions.
On the other hand, Powell emphasized the independence of the FED in his speech at the Greater Providence Chamber of Commerce in Rhode Island:
“We don’t take political factors into account when making our decisions. What matters to us is implementing the policy that will best serve the public in the medium term. We don’t engage in debate; we simply do our job.”
*This is not investment advice.