The succession at the FED

Jerome Powell is in Trump's sights, and the Treasury Secretary has already announced that the process of choosing a new chairman of the US Federal Reserve is underway. It was during his first term that Trump chose Powell, considering him the best in the world. Now he publicly calls him an "idiot."
The reason is simple: the Fed is keeping interest rates at 4%, while the president argues that they should currently be at 1%. Powell argues that there is inflationary pressure, which will worsen due to the imposed tariffs, while Trump wants a Fed guided by political interests, not just financial and economic ones.
Powell has already lost this battle, and his physical exhaustion is evident. 4% interest rates obviously don't encourage investment or consumption; however, the reality of tariffs will trigger inflation, which shows no signs of slowing down, decreasing the real value of money. The point is that the strategy of raising the price of money to balance consumption and investment also generates a doubly negative effect on the economy.
There are no safe and recommended recipes, but the Fed's current approach is clearly obsolete. Economic problems cannot be addressed today in the same way as half a century ago. The ECB has followed the right path, and that is what Trump wants when seeking to choose a new chairman of the US Federal Reserve.







