- The idea that America’s central bank should operate without political interference is a norm without ironclad protections, particularly if the Supreme Court rules in favor of the new administration. America’s bouts with inflation during the second half of the 20th century underline economists’ arguments that the Fed needs to sometimes make unpopular decisions on interest rates, even if the president might pay the price.
Donald Trump has made it clear he wants a say on setting interest rates—and that he wants borrowing costs to come down. He’s repeatedly criticized Federal Reserve Chair Jerome Powell, whom Trump appointed to lead the central bank in 2018, particularly for the decision to keep rates steady following the Fed’s January meeting. Powell has refused to comment on Trump’s critiques, besides noting the two men haven’t spoken, and is adamant the president can’t legally fire him before his term as chair ends in 2026.
