Business Daily The feud between Trump and the Fed
7 snips
Aug 17, 2025 
Former US President Donald Trump shares his candid insights on the contentious relationship with Jerome Powell, the head of the Federal Reserve, whom he appointed. The discussion dives into their public disputes and the ripple effects on the global economy. Trump expresses concerns about inflation and critiques the Fed's recent policies, raising alarms about potential economic instability. The conversation also touches on the pressures faced by the central bank and the fears surrounding its independence amid political influence.
AI Snips
Chapters
Transcript
Episode notes
Bromance Turned Public Feud
- Trump and Jerome Powell started as allies when Trump appointed Powell in 2017 but their relationship has soured significantly.
- The public personal feud now raises questions about the Fed's independence and credibility.
Fed’s Dual Mandate And 2% Target
- The Federal Reserve balances maximum employment and price stability, targeting 2% inflation.
- Persistent inflation above that target prompted aggressive Fed actions in recent years.
Independence Underpins Price Stability
- Credibility and independence let the Fed set interest rates without political pressure.
- If political leaders publicly undermine the Fed, inflation risks could rise from politicised rate decisions.