Start Here High Interest: Trump Visits the Fed
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Jul 25, 2025 Selena Wang, ABC News senior White House correspondent, discusses President Trump's unprecedented visit to the Federal Reserve. Their tense dynamic unfolds as Trump openly criticizes Chair Jerome Powell, raising concerns about the Fed's integrity. The conversation delves into the repercussions of Trump's mixed messages on interest rates and tariffs, as well as a recent settlement involving Columbia University. This episode intricately weaves together politics, economics, and academia, shedding light on the complexities at play in today's landscape.
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Trump's Visit Challenges Fed Norms
- President Trump's rare visit to the Federal Reserve broke norms as he criticized Fed Chairman Powell, whom he appointed.
- This highlights tensions in preserving Federal Reserve independence amidst political pressures.
Tariffs Drive Fed Rate Tensions
- Trump's tariffs partly contributed to rising construction costs of the Fed renovation project.
- Powell withheld interest rate cuts to monitor tariff impacts, causing friction with Trump wanting lower rates immediately.
Risks of Politicizing Fed Chair
- Firing the Fed chair doesn't guarantee lower interest rates due to committee voting.
- Politicizing rate decisions risks inflation, market instability, and long-term growth damage.
