Part 5/11:
Turning to the United States, recent reports reveal internal tensions surrounding the Federal Reserve. Donald Trump, the former president, reportedly drafted a letter expressing intentions to dismiss Fed Chair Jerome Powell, with discussions reportedly underway among White House officials. Treasury Secretary Janet Yellen confirmed that moves to replace Powell were indeed in progress.
Trump publicly criticized Powell’s handling of monetary policy, particularly highlighting the $2.5 billion renovation of the Fed’s headquarters, which faced costs nearly quadrupling initial estimates. Trump’s frustration reflects broader disagreements over interest rate policies at a time when inflation remains high—around 2.5%, which, while lower than recent years, is still considered elevated historically.