US President Donald Trump has reversed his threat to fire Federal Reserve Chairman Jerome Powell, but experts warn that this reprieve is unlikely to last. This latest move comes after a tumultuous week where the president was on the brink of axing the central bank chief.
In February, investors celebrated when Trump postponed tariffs on Canada and Mexico, only for him to reverse course just months later. A similar pattern is emerging with his stance on Powell, who had been under pressure from the White House over monetary policy.
Despite this temporary reprieve, experts say that Trump’s attacks on the Fed are far from over. The US central bank’s independence has long been a subject of contention between the administration and the bank’s leadership.
As one observer noted, “When Donald Trump is making economic policy, a reprieve is little more than a pause for breath.” This sentiment holds true in the case of Powell, whose position remains precarious as Trump’s mood continues to shift. The outcome ultimately depends on who has Trump’s ear – and when.
Meanwhile, other news stories from around the world include developments in Brazil’s Supreme Court, concerns over plastic waste management, and a look at Britain’s equal-pay rules.
Source: https://www.economist.com/leaders/2025/04/23/president-trumps-attacks-on-the-fed-are-not-over