US President Donald Trump has renewed his criticism of the Federal Reserve Chairman Jerome Powell, accusing that he is very slow to reduce interest rates and the escalation of a long -term conflict risking the undermining of the political independence of the Central Bank.
Trump really said on April 17, with the reduced interest rates at the European Central Bank (ECB) again on April 17, Powell failed “it is too late” to act appropriately in the United States, even with low inflation.
“End Powell cannot come quickly enough!” Trump said.
Sinator Florida Rick Scott agreed with the president, Saying“It is time for a new leadership in the federal reserve.”
Trump’s public criticism of the full moon breaks a decades -long conference in American policy that sought to protect the central bank from political scrutiny, which includes any executive decision to replace the president.
In a speech on April 16 at the Chicago Economic Club, Powell said that the Federal Reserve Independence was a “legal issue.” Powell previously signal His intention is to serve the rest of his term, which ends in May 2026.
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Crypting, the risk assets look forward to the federal reserve to obtain the guidance
The Federal Reserve has a great impact on financial markets, with monetary policy decisions that affect liquidity in US dollars and the formation of investor morale.
Since the Covid-19 pandemic, the encryption markets have been increasingly under the influence of the Federal Reserve due to the increasing link between liquidity in dollars and asset prices.
This has been confirmed more by 2024 academic paper Written by Kingston University professors in London Jinsha Zhao and Ji Miao, which concluded that liquidity conditions now represent more than 65 % of Bitcoin price movements (BTC).
As inflation and market turmoil increased in the trade war, federal reserve officials face increasing pressure to reduce interest rates. However, Powell repeated the parking and vision approach to the central bank where officials make the potential impact of definitions.
The Federal Reserve Bank is expected to maintain the parking and vision policy in its next meeting in May, with the prices of the FED FUNT Fund Meaning Less than 10 % chance to reduce the rate. However, price reduction bets increased to more than 65 % at the FBI policy meeting in June.
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