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Trump responds to Federal Reserve controversy: "They should stay loyal," as risks to central bank independence raise market concerns
【BlockBeats】Recently, there has been some movement in the US political circle. The Department of Justice has launched an investigation into Federal Reserve Chair Jerome Powell, triggering a strong backlash from Senate Republicans—who threaten to obstruct Fed Chair nominations to maintain the central bank’s independence. In this power struggle, Trump directly responded.
When asked about the opposition within the party, Trump was blunt: “I don’t care, there’s nothing to say. They should stay loyal.” The implication is clear—central bank independence might have to give way to political considerations in his view.
Meanwhile, JPMorgan Chase CEO Jamie Dimon also stepped in to pour cold water, warning that Trump’s interference with the Federal Reserve could push up inflation. Trump dismissed this: “I don’t care what he says.” The opposition between the two on inflation and policy positions immediately became apparent.
Behind this turmoil lies a fundamental question: Can the Federal Reserve independently set monetary policy? Or will it ultimately bow to political pressure? For market participants concerned with macroeconomics, such policy uncertainty often signifies risk.