{"slug":"trump-first-term-jerome-powell-fed-attacks","title":"Federal Reserve Independence Attacks: Unprecedented Presidential Pressure on Fed Chair Powell","date":"2018-07-19","lastUpdated":"2019-12-11","description":"Trump conducted an unprecedented public campaign against Federal Reserve Chairman Jerome Powell, whom he had appointed, attacking him repeatedly for raising interest rates. Trump tweeted and publicly stated that the Fed's interest rate decisions were hurting the economy, called the Fed 'crazy,' 'loco,' 'out of control,' and 'boneheads,' and raised the question of whether he could fire Powell — which most legal experts said he could not. The Federal Reserve's independence from political pressure is a foundational principle of American monetary policy; Trump's sustained attacks represented a departure from decades of presidential practice.","summary":"Trump nominated Powell to chair the Federal Reserve in November 2017 and he was confirmed in February 2018. By July 2018, Trump was publicly criticizing Powell's interest rate decisions — the first time in decades a sitting president had publicly pressured the Fed chair in this manner. Over the following 18 months, Trump made more than 100 public statements criticizing the Fed's rate decisions. He called the Fed 'the biggest risk to the economy,' said the Fed had gone 'crazy' with rate increases, asked why he should have a Fed that was tightening while Europe was loosening, and repeatedly compared Powell unfavorably to Chinese central bank policy. Trump also inquired about whether he could demote or fire Powell, which advisers told him he could not legally do under the Federal Reserve Act.","category":"rule-of-law","severity":"significant","ongoing":false,"sources":[{"url":"https://www.nytimes.com/2019/09/11/business/economy/trump-federal-reserve-powell.html","title":"Trump Attacks Fed Chair Powell as 'Bonehead' as Central Bank Cuts Rates","publisher":"The New York Times"},{"url":"https://www.washingtonpost.com/business/economy/trump-fed-independence-powell-attacks/2019/09/11/story.html","title":"Trump's relentless attacks on Federal Reserve independence are unprecedented","publisher":"The Washington Post"},{"url":"https://apnews.com/article/trump-powell-federal-reserve-attacks-interest-rates","title":"Trump attacks Fed, compares Powell to Chinese leader in monetary policy","publisher":"The Associated Press"},{"url":"https://www.wsj.com/articles/trump-considered-demoting-powell-as-fed-chief-11547856301","title":"Trump Considered Demoting Powell as Fed Chair","publisher":"The Wall Street Journal"}],"draft":false,"status":"published","tags":["Federal-Reserve","Powell","first-term","rule-of-law","monetary-policy","institutional-independence"],"relatedEntries":[],"timeline":[{"date":"2017-11-02","title":"Trump nominates Powell as Federal Reserve Chair","summary":"Trump nominates Jerome Powell, a Republican lawyer and Federal Reserve Board member, as Fed Chair. Powell is seen as a consensus choice and is confirmed by the Senate in February 2018 with broad bipartisan support."},{"date":"2018-07-19","title":"Trump publicly criticizes Fed rate decisions — break with presidential norms","summary":"In a CNBC interview, Trump says he is 'not thrilled' about the Fed's interest rate increases, marking the first time in decades a sitting president has publicly criticized the Fed chair's policy decisions. The break with established norms is widely noted."},{"date":"2018-10-11","title":"Trump calls Fed 'crazy' and 'out of control' as markets decline","summary":"As stock markets fall, Trump says the Fed has 'gone crazy' and calls the rate increases 'ridiculous' and 'out of control.' He blames the market decline on Fed policy. His public attacks on the Fed escalate through the fall of 2018."},{"date":"2019-01-01","title":"Reports emerge Trump discussed demoting Powell for months","summary":"The Wall Street Journal reports that Trump had discussed demoting Powell from Fed Chair to a regular board member for months. Advisers told Trump the legal basis for such a demotion was unclear and could trigger a market crisis."},{"date":"2019-09-11","title":"Trump calls Powell and Fed board 'boneheads' — demands negative rates","summary":"Trump tweets that the Fed chair and board are 'Boneheads' and demands zero or negative interest rates, comparing Fed policy unfavorably to European central banks. The attack comes even as the Fed had begun cutting rates in response to economic conditions."},{"date":"2019-12-11","title":"Fed holds rates steady — Trump pattern of attacks documented at more than 100 statements","summary":"By the end of 2019, analysts and journalists had documented more than 100 public statements by Trump criticizing the Federal Reserve's interest rate decisions — an unprecedented volume of presidential pressure on an institution designed to operate independently of political interference."}],"location":{"name":"Washington, D.C.","lat":38.9072,"lng":-77.0369},"custom":{"era":"first-term","posture":"reported","warCrimeClassification":"enabling","internationalLaw":[],"iccRelevance":false,"victims":"The institutional independence of the Federal Reserve, which provides a buffer between short-term political incentives and monetary policy decisions; American financial stability which depends on markets trusting that monetary policy is set on economic rather than political grounds; Federal Reserve officials subjected to unprecedented political pressure","structuredPerpetrators":[{"name":"Donald Trump","role":"President; made more than 100 public statements criticizing Fed interest rate decisions; asked advisers about firing or demoting Fed Chair Powell; called the Fed 'crazy,' 'loco,' and 'boneheads' in public statements; attempted to use executive pressure on an institution designed to be insulated from political interference","institution":"White House"}],"updateLog":[{"date":"2019-12-11","summary":"Based on December 2019 accounting of Trump's Fed attacks during first term."}]}}