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The stability of the Federal Reserve under Trump
President-elect Donald Trump recently clarified his position regarding Jerome Powell, the governor of the Federal Reserve. In an interview given during NBC News’ ‘Meet the Press’ program, Trump said he had no intention of removing Powell from office before his term of office expires. This statement marks a significant change compared to Trump’s explicit criticism of Powell during his first term, when he called him a ‘wooden head’ and threatened to fire him for his interest rate management
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Powell’s Past Criticism and Future
During this year’s presidential campaign, Trump renewed his criticism of Powell, arguing that the governor could act to favor Democrats by lowering interest rates. However, despite these tensions, Trump said he had no immediate plans to remove Powell, stating: “No, I don’t have it.” This approach seems to reflect a more cautious strategy, in which Trump recognizes the importance of economic stability and continuity at the helm of the Federal Reserve
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The crucial role of the Federal Reserve
The Federal Reserve plays a crucial role in the U.S. economy, managing monetary policy and influencing interest rates. Jerome Powell, whose term as Fed chair expires in May 2026, has led the central bank through significant challenges, including the COVID-19 pandemic. His position was confirmed by the fact that, by law, Fed governors cannot be removed because of their political views. This isolation from everyday political pressures is critical to ensuring economic decisions based on data and analysis rather than political considerations
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The appointments and structure of the Federal Reserve
The members of the Federal Reserve Board of Governors are appointed by the President of the United States and must ensure fair representation of the country’s economic interests. Each governor has a 14-year term, and appointments are staggered to ensure continuity and stability. This system is designed to protect the Fed from political fluctuations and to maintain public confidence in its independence. Powell’s position, therefore, is not only a matter of Trump’s personal preferences, but also reflects a broader commitment to economic stability
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