Consider This from NPR Maintaining stability is key to the economy. That's getting harder.
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Apr 22, 2025 In this engaging discussion, NPR's Scott Horsley, a seasoned economic journalist, explores the delicate balance the Federal Reserve must maintain in stabilizing the economy amidst political pressures. He highlights the conflict between Jerome Powell and President Trump, especially regarding tariff policies that could jeopardize growth. Moreover, Scott dives into the Fed's ongoing challenges with inflation and emphasizes the crucial need for its independence in decision-making. The conversation sheds light on the potential impacts of these tensions on financial markets.
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Fed's Economic Stability Role
- The Federal Reserve's chief role is to stabilize the economy and mitigate downturns through managing financial institutions and interest rates.
- This role is designed to be performed independently from political pressures to ensure unbiased economic decisions.
Fed Chair Stresses Independence
- Jerome Powell emphasizes the Fed acts independently and won't bow to political pressure.
- He warned that Trump's tariffs will likely raise inflation and slow economic growth.
Trump's Attacks on Powell
- President Trump publicly criticized Jerome Powell for not cutting interest rates fast enough and threatened to fire him.
- Trump called Powell a "major loser" on social media after Powell's warnings on tariffs hurting the economy.