Part 3/6:
As President Trump settles into his new administration, tensions rise with Federal Reserve Chair Jerome Powell over interest rate policies. While Powell has opted to maintain current interest rates, Trump has been vocally critical, suggesting that the Federal Reserve is lagging behind in addressing economic conditions. The feud underscores an ongoing conflict between the executive branch and the independent Federal Reserve, which is designed to resist political pressures.
Investor Steve Eisman warns that premature rate cuts could backfire detrimental to the economy given the uncertainty around trade deals. Discussions on Trump’s potential to dismiss Powell have emerged, though legal constraints currently limit his ability to do so without cause.