Donald Trump distance Limoger Jerome Powell

New turning for Donald Trump. After the markets, alerting for a few days by multiplying insults and threats against the boss of the Federal Reserve, the president of the United States said that he was never planning to dismiss Jerome Powell. “The press is dragged along. No, I never intended to fire him. I wish he would be a little more active with his idea to lower the interest rates.”

We recommend that the diving of Wall Street and the discreet advice from the secretary of the treasury, Scott Bessent, fiery defender of the principle of the independence of the FED, Donald Trump.

The first reaction of investors is positive, because the insulation of the monetary policy of partisan and election pressure is a fundamental element of the credibility of the dollar and the quality of the uncle Sam. However, evil is done. Donald Trump continues to put pressure on the Fed explicitly and publicly. He again demonstrates his unstable character and his ability to question the fundamental elements of American administration, without realizing the very toxic consequences of his approach.

«Immense loser»

In the United States, a country where debts feed more than elsewhere, and lets a lot of life – for a while – above their resources, the level of interest rates is a subject of daily conversation. Paradoxically, the course of the dollar is hardly interested in the Americans because they do not travel abroad. On the other hand, in the same way as the price of gasoline and eggs, the Americans closely follow the whims of interest rates. It is the costs of their long-term rental monthly payments (leasing) to replace their pick-up van with a more shiny model, the duration of their vacation in advance financed on Creditcard and their home change, dictated by mortgage loans.

Although his customs duties increases, inflation will re -launch and in the short term worsen the risk of a recession, Donald Trump mainly understood everyone, the political advantage that he could retire today Jerome Powell to take responsibility for a predictable consumption, a likely contraction of hiring and a decrease in investment. Damn, but of course, the man who decides that short interest rates will be charged! By dealing with it «D’oSse Loser»to call “Monsieur too late”Donald Trump wanted to lead to the boss of the Federal Reserve, the anger of the people Maga against dear life.

President Trump’s election calculation was simple: refusing to reinforce tax increases the strong increase in customs duties that he imposes on thousands of imported finished and intermediaries without the voice of congress. On the other hand, he must claim that these always unpopular measures will redesign more and more industrial investments on American soil. Donald Trump, however, has aware that the purchasing power of millions of households will suffer, Jerome Powell has appointed Jerome Powell as guilty of anti-inflatoire ruthlessness, because he refuses to immediately lower the main rate of the central bank. “Even the European Central Bank lowers its rates,” Last week the US president forgets, who forgets that the situation and inflation in Europe are very different.

Easy prey

Wall Street and the vast majority of economists give reason to the current caution of the boss of the Federal Reserve. The president’s anger to indicate a scapegoat let him take the risk of collapsing the stock market and the increase in market rates for which the American treasury must borrow to fulfill his enormous budget deficit. What was most intended for Donald Trump was to designate the Maga people with a fully made perpetrator for the approaching recession. “His departure cannot intervene early” In this way the president had released on his social network, Truth Social.

Jerome Powell, sixteenth president of the Council of Governors of the Fed, senior moderate official, purely product of the time that Republican meant “Work for free trade”Will probably remain a scapegoat for the populist impatient that the White House occupies. The incident is certainly not closed. Reconciliation with man whose mandate is going next year is not possible.

Faced with Donald Trump’s all -round offensive to populate loyal servants The management of all federal agencies, even those designed by the law to be independent of the executive power, is Jerome Powell an easy prey. Charisma deposit, the silent Septuagenarian has very little ego. From there even comes that his success comes, he who, unlike most of his predecessors, has nor PhD in the economy, nor has a diploma.

Lawyer at Wall Street

A resident of Washington, first trained in Princeton in the political sciences, then at the University of Georgetown as a lawyer, Jerome Powell is known for his courtesy and his courtesy. He was brought up in the same Catholic private school of Georgetown Prep, where other conservative figures of the elegant and shady district of Chevy Chase, north of Washington, such as lawyers Neil Gorsuch and Brett Kavanaugh, nowadays hired at the Supreme Court. We know this cycling enthusiast and guitar collector, but Jerome Powell deny the media.

He served as an assistant, then under State Secretary of the Treasury under George Bush Father. He had a career as a lawyer at Wall Street for the first time, before spending eight years at Carlyle Group, the powerful Washington Investment Fund. Married, father of three, “Jay” Powell also distinguished itself in a bipartite research center, another rarity in the federal capital, the Bipartisan policy center. Barack Obama brought him to the Fed Governors Council in 2012 to complete the mandate of an outgoing governor. He was renewed there two years later for a period of fourteen years.

It is Donald Trump himself who also chooses him to become President of the Council of Governors of the Fed in 2018. This mandate will run in four years and Joe Biden has renewed it in 2022. The overlap of the two simultaneous mandates is important, because even if Donald Trump had rejected a constitutional and financial crisis. The latter could even immediately decide to choose him again as president.

Sober, even boring

After thirteen years at the Fed, Jerome Powell, initially uncomfortable and very “scripted” for the journalists, received security. He was heavily criticized because, like many others, he underestimated the power of the return of inflation after the Covid crisis. Since then, the management of interest rates has been considered more favorable. He is nevertheless accused of being consensual and to be executed too much by the sometimes conflicting signals given by the situation. To urge too much to be “dependent”, that is, led by statistics, the modern Fed actually takes the risk of late in the markets that anticipate much more on trends.

His style is intentionally sober, even boring. But characteristics of humor and a strong distribution betray a nice spirit and a deep culture. This is the place of the antipodes of Maga -populism, but it had a lot to be respected, especially in the congress, on the part of very partisan Democrats, whose susceptibility he managed to save. They are those who dare to defend his independence today, while the Republicans are often afraid to go to the niche opposite the anger of their president who does not respect the established Washington Order.