Key Takeaways
- President Donald Trump has intensified his criticism of Federal Reserve Chair Jay Powell, threatening removal and demanding faster interest rate cuts.
- Powell warned that Trump's tariffs would lead to slower economic growth and higher inflation, creating tension between the Fed's dual mandates.
- The Fed has kept rates on hold in 2025 after three consecutive cuts in 2024, signaling no immediate plans for further reductions.
- Powell has defended the Fed's independence, stating the central bank will not be influenced by political pressure.
- International central banking leaders, including ECB President Christine Lagarde, have expressed support for Powell and central bank independence.
