Australian investors and policymakers awoke this morning to reports that Donald Trump is again considering firing Federal Reserve Chair Jerome Powell.
The New York Times reported that Trump had shown a draft letter dismissing Powell to a group of Republican congressmen at the White House. He later denied any plans to do so.
The US president has little time for norms — and central bank independence is no exception. But it’s worth remembering the main reason for his distaste toward the Federal Reserve Chair, whom he himself nominated in 2017.
Powell, dubbed “Mr Too Late” by Trump, isn’t doing what the president wants: cutting interest rates. That reluctance is due in no small part to inflation uncertainty driven by Trump’s own tariffs.
