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Federal Reserve's Crucial Role
- The Federal Reserve is crucial for controlling money flow and interest rates in the US economy.
- Trump's desire to control interest rates threatens the Fed's independence and market confidence.
Limits on Firing Powell
- Trump cannot easily terminate Jerome Powell despite threats; Fed independence shields Powell.
- Powell manages inflation and unemployment per his fiduciary duty, opposing political pressure.
Tariffs Complicate Fed's Job
- Tariffs are inflationary, complicating the Fed's task to balance inflation and unemployment.
- Trump's economic policies force the Fed into a difficult tradeoff between rate adjustments and job losses.