The best check on Fed politicisation is fear of being judged a failure, says Richard Clarida
To install a loyalist, Donald Trump will have to overcome barriers in the courts, in Congress and in markets
PRESIDENT DONALD TRUMP has once again been aiming sharp criticism at Jerome Powell, accusing the Federal Reserve chairman of keeping interest rates “artificially high” and being a “bad person”. Although in the past Mr Trump has argued that the president can under law “fire” the Fed chair if they disagree over monetary policy, this would almost certainly be fought in the courts, including by Mr Powell himself. Regardless, because Mr Powell’s second statutory four-year term as Fed chair ends in May 2026, Mr Trump will soon have a chance to nominate his successor. Given the president’s relentless attacks on the Fed chief since retaking office in January, his nominee’s commitment to resisting pressure from the White House is sure to be closely scrutinised by Congress and financial markets.
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This article appeared in the By Invitation section of the print edition under the headline “Richard Clarida”
From the July 5th 2025 edition
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