Trump's Pressure on Fed Chair Powell: Inflation Concerns and Legal Limits

President Trump's attempts to influence the Federal Reserve's interest rate policy have been met with resistance from Chair Jerome Powell. Concerns about inflation, exacerbated by Trump's tariff policies, have led Powell to resist calls for lower rates. This situation highlights the delicate balance between political pressure and the Fed's mandate to maintain economic stability. Legal precedent, dating back to 1935, protects the Fed's independence, making it difficult for the president to remove Powell. The video includes footage of Trump's comments, underscoring the tension between the executive branch and the central bank. "If he would lower interest rates like China did," Trump said, highlighting his desire for lower borrowing costs. However, the ongoing inflation makes lowering rates a risky move, as it could further fuel price increases. The Supreme Court's past decisions reinforce the Fed's autonomy, suggesting that Trump's threats to remove Powell may be largely symbolic.