For months, the usually stoic Jerome Powell, Chair of the Federal Reserve, has maintained a remarkably composed silence. While President Trump has waged a public and often scathing campaign for greater control over the US central bank, issuing various statements and even threats, Powell has largely chosen to let his actions and the Fed’s policies speak for themselves. This measured approach has been a hallmark of his tenure, designed to protect the Fed’s cherished independence from political interference.
But that era of quiet diplomacy appears to have come to an abrupt end. In a development described as ‘unprecedented,’ Powell has reportedly lashed out over a legal threat, signaling a significant escalation in the ongoing feud with the Trump administration. This isn’t just a shift in tone; it marks a pivotal moment where the Fed’s leader has decided to directly confront the challenges to the institution’s autonomy. The gloves, it seems, are finally off, and the implications for the future of central bank independence are profound.
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