Confrontation Between the President and the Federal Reserve
In the United States began a new round of confrontation between President Donald Trump and the Federal Reserve in the face of Jerome Powell.
The Federal Reserve gone "crazy". Such a bold assessment made the US President Donald Trump, commenting on the sharp decline in stock market indices. The harsh rhetoric of the head of the White House was caused by a too rapid, in his opinion, increase in the key rate.
The Fed responded criticism to the words of eccentric president. Jerome Powell said that the trade wars that Donald Trump is unleashing could undermine investor's confidence and exacerbate the situation on stock exchanges even more. The tightening of the monetary policy of the Fed objectively dealt a powerful blow to Trump and his economic course.
Trump and the Fed have different approaches to global economic governance. However, Different approaches to managing the economy are just what the White House’s head cannot be satisfied with. Trump could not refrain from critical remarks about the country's monetary policy. Meanwhile, according to experts, his predecessors did not allow this for themselves, trying not to undermine the independence of the regulator when making decisions.
A change of rhetoric has launched a discussion among observers on how long Trump will manage to retain his presidency.
The question is whether Donald Trump will finalize before the end of the presidential term. He begins to intervene in those areas in which no US president allowed himself.
Mr. Trump, handing out advice from his Twitter, seems to consider himself entitled to choose the course of the monetary policy of the United States. Not for nothing, he earlier this year put Jerome Powell in a chair of a head of the Fed. Did Trump think then that his protégé, once he had mastered himself, would show resistance?
Mr Trump is unlikely to reach an understanding with the Fed. Trump and Powell pull the rope of the American economy in different directions. Exactly in the middle are the European, Asian and other financial markets, the state of which greatly depends on the situation in the States.