President Trump intensified his attacks on the Fed Chair at various points throughout the year.
Trump, who appointed Jerome Powell to the role during his first term, has long pressured Powell to lower rates at his whim. But his feud with the central bank chief appeared to reach a new level this year as he called on rates to be lowered ASAP and referred to Powell as “stupid,” “Too Late,” and other names on Truth Social.
In April, Trump said that Powell leaving the Fed couldn’t come soon enough, leading US stocks to drop sharply.
Stocks sold off again in July when Bloomberg reported that Trump could fire Powell soon. The 10-year US Treasury yield, a reflection of long-term rates in the economy, also rose in these instances.
The comments from Trump’s administration are considered by many to be unprecedented, given that most past presidents have let the Fed operate independently. They’ve also sparked fear that inflation could rise if the president were to intervene in monetary policy, which could raise rates in the long run.
In April, Trump clarified that he had no intention of firing Powell from his post. But the president still appeared to flirt with the idea as a hypothetical when speaking to reporters at the Mar-a-Lago this week.
