As of today, there are exactly 9 months until the US presidential elections on November 5th. The Democratic Party’s candidate is clear: President Joe Biden… In the Republican Party, primaries in the states have also started to determine the candidate.
With former President Donald Trump’s candidacy all but assured, the businessman with a personal fortune of $2.6 billion was a guest on Fox Business over the weekend. Trump’s target was Federal Reserve (Fed) Chairman Jerome Powell.
Stating that he would not reappoint Powell if he became president, Trump accused the Fed chairman of cutting interest rates to give Democrats an advantage in the 2024 elections: “It seems to me that maybe he’s trying to lower interest rates for the sake of getting people elected, I don’t know.” Stating that he had several options for the next Fed Chairman, Trump did not name names.
Powell was appointed by Trump in 2017. But the relationship between the appointee and the appointee has never been good. Trump accused Powell of damaging the economy for years. In 2021, Biden appointed him once again. CNN Television also commented on the tension: “The purpose of interest rate hikes is to slow the economy by increasing the amount companies pay to borrow. This could lead to higher rates on government debt, where consumer loans are pegged, as are mortgage and credit card rates.
When borrowing becomes more expensive, companies can hire less and consumers can spend less, which can keep inflation from running away. These are a necessary part of the economic cycle, and politicians usually oppose when rates are high. But Trump’s constant attacks on the Fed during his presidency have been unprecedented in both frequency and directness.”
