As Trump and Powell saga plays out, it’s the Fed’s independence that gives it credibility

IN ONE of US President Donald Trump’s many attempts to flout the norms of American democracy, the populist Republican leader is now busy trying to wrest control of the central bank from Federal Reserve chair Jerome Powell – a move that could prove even more self-defeating than his vindictive tariff policies.

The US stock market took a dive early on Wednesday (Jul 16) after the president reportedly told a meeting with Republican congressional figures that he would launch an effort to oust Powell from his job. Stocks stabilised later in the session, when Trump denied the reports that he had a plan to fire the Fed chief.

Later that day, the president seemed to suggest that he could still seek Powell’s removal before the central banker’s term ends in May 2026.