Federal Reserve Independence Attacks: Unprecedented Presidential Pressure on Fed Chair Powell
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.