In a recent Fox Business interview, former President Donald Trump declared his reluctance to reappoint Federal Reserve Chair Jerome Powell if victorious in the upcoming presidential election.
Trump accused Powell of potentially lowering interest rates to benefit President Joe Biden’s re-election prospects, stating his skepticism towards Powell’s impartiality.
Despite Biden’s reappointment of Powell in 2021, Trump, who initially appointed Powell in 2017, turned against him shortly after his second term began in February 2018. During this period, Trump frequently criticized Powell and the Fed for raising borrowing costs, particularly amid stock market declines and signals of a looming recession.
In the interview, Trump expressed concerns about potential “massive inflation,” attributing it to escalating tensions in the Middle East, particularly if oil and energy prices surge due to disruptions caused by attacks on shipping vessels in the Red Sea.
Powell and the Fed recently conveyed their decision to halt rate increases, waiting for increased confidence in inflation falling to their 2% target before considering rate cuts, a move anticipated later this year.
