Overview

• President Trump has escalated public criticism of Federal Reserve Chair Jerome Powell, demanding interest rate cuts to boost the U.S. economy.
• Jerome Powell has firmly resisted these demands, citing inflation risks and the Fed's mandate to ensure price stability and financial system integrity.
• Markets experienced significant volatility earlier this week, with stocks falling 2.5%, the dollar hitting a three-year low, and gold prices reaching a record high of $3,500 per ounce.
• European Central Bank President Christine Lagarde has voiced strong support for Powell, warning that political interference in central banking can lead to higher inflation and slower economic growth.
• Trump has denied plans to fire Powell but reiterated his authority to act quickly, highlighting the legal complexities surrounding the removal of a Fed chair under the Federal Reserve Act.