Trump Imposes New US Tariffs on Drone Imports Over National Security Concerns 
European Stocks Rise as U.S. Inflation Data Eases Fed Rate Hike Fears 
Gold Prices Slip From Two-Month High as Inflation and Fed Outlook Drive Markets 
Iran War Escalates as US, Houthis Target Ships Near Key Oil Routes 
Trump Orders Major Overhaul of US Navy Shipbuilding 
Canada-US Trade Talks Gain Momentum Ahead of Aug. 19 Tariff Deadline 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
Canada, US Hold Fresh Trade Talks as August 19 Tariff Deadline Nears 
Israeli Troops Enter Qusra Homes as West Bank Settler Siege Continues 
Taiwan Slams ‘Dangerous’ China-Indonesia Naval Drill Near Island 
France Inflation Rises 2.4% in July as Consumer Prices Increase 
Wall Street Hits Record High as Softer Inflation Data Eases Fed Rate Hike Fears 
North Korea Launches Ballistic Missile as US-South Korea Drills Near 
US, Colombia Weigh Joint Strikes on Armed Groups in Expanded Anti-Drug Campaign 
Albanese Says AUKUS ‘Full Steam Ahead’ After Trump Call 
Australia Sets New Minimum Pay, Insurance Rules for Gig Workers 
KOSPI Rebounds 20% as Samsung, SK Hynix Lead South Korea Stock Rally 
Add as a preferred source on Google
President-elect Donald Trump has confirmed that Federal Reserve Chair Jerome Powell will not be removed from his position when Trump assumes office in January. However, Trump’s comments during an NBC interview suggest the possibility of future tension as he seeks to implement his economic agenda.
Trump’s Comments Signal Uneasy Truce
In an interview aired Sunday on Meet the Press, Trump stated, “No, I don’t think so. I don’t see it,” when asked if he would attempt to replace Powell. While the remark initially seemed to quell speculation about Powell’s removal, Trump added, “If I told him to, he would [leave]. But if I asked, he probably wouldn’t.”
Trump’s remarks underline a complex relationship between the two. Powell, a Republican appointed by Trump in 2018, faced heavy criticism from the president during his first term over the Federal Reserve’s monetary policies. Trump’s frustration peaked in 2018 when the Fed raised interest rates, prompting him to publicly question Powell’s competence and privately discuss firing him.
The tension between the two persisted, with Trump’s rhetoric often challenging the Fed’s independence. During the COVID-19 pandemic, Trump accused Powell of making “bad decisions” and hinted at asserting greater influence over the institution.
Potential Clashes Over Economic Policies
Despite confirming Powell’s position, Trump’s campaign promises could reignite disagreements with the Federal Reserve. His pledge to lower mortgage rates and reduce borrowing costs may conflict with Powell’s cautious approach to monetary policy.
Additionally, Trump’s vow to impose across-the-board tariffs on imports could further strain the Fed’s efforts to manage inflation. Economists warn that such tariffs could drive up prices, forcing the Fed to reconsider its current strategy of gradually lowering interest rates.
Recent economic data indicate a cooling U.S. labor market, leading traders to anticipate a quarter-percentage-point rate cut during the Fed’s December meeting. The reduction would place the policy rate in the 4.25%-4.50% range, significantly below its peak earlier this year.
Mixed Reactions Online
Trump’s confirmation of Powell’s role and his ambiguous remarks sparked varied reactions across social media:
- @EconWatcher: “Keeping Powell? Bold move, but will Trump really stay out of Fed decisions this time? Doubt it.”
- @FinanceGuru: “Powell staying put means stability for now, but Trump’s history suggests fireworks ahead. #FedDrama”
- @MarketAnalyst: “Trump and Powell: round two? Investors are bracing for another showdown. #FederalReserve”
- @PolicyCritic: “The Fed’s independence is crucial. Trump needs to respect it this term. #MonetaryPolicy”
- @StockTrader2024: “Rate cuts incoming, but can Powell hold the line against Trump’s interference? #Economy”
- @GlobalMarketNews: “Trump’s tariffs and Powell’s caution—can they coexist without market chaos? #TradeWars”
