By John Q. Hosedrinker 
The Trump administration initiated a criminal investigation into Federal Reserve Chair Jerome Powell, alleging he lied to Congress about headquarters renovations, a move perceived as an attempt to force interest rate cuts. This investigation is considered a tactical blunder, as it demonstrates Trump’s true motive of undermining the Fed’s independence for political gain. The probe also reveals why the judiciary must protect Powell, as Trump’s actions showcase his disregard for the rule of law. Ultimately, the Supreme Court, already wary of the administration’s actions, should use this as reason to impose strict limits on the president’s ability to fire the Fed’s members.
Read the original article here
Trump’s Transparent Persecution of Jerome Powell Is About to Backfire Badly
The ongoing attacks on Jerome Powell by Trump are a blatant attempt to exert control over monetary policy, and it’s looking like this move might backfire spectacularly. It’s a transparent effort to manipulate the Federal Reserve for personal and political gain, and it’s a dangerous game with potentially devastating consequences. Trump’s frustration seems rooted in his desire to boost the economy before the midterms, and he sees lowering interest rates as a quick fix. This strategy, however, prioritizes short-term gains over the long-term health of the economy, a classic Trump move.
This isn’t just about influencing interest rates; it’s about undermining the very institutions that safeguard the American economy. Trump’s actions, including constant criticism and pressure on Powell, echo patterns seen in countries where leaders have direct control over monetary policy, leading to economic instability and corruption. The historical precedent is clear: when politicians meddle in the central bank’s affairs, economies often suffer. Trump’s aim is to ensure he can manipulate the economy to his personal advantage, especially benefiting his own financial dealings and businesses.
The timing is particularly telling. Even if interest rates are slashed before Powell leaves his position in June, the impact might not be felt by the average person in time for the midterms. This exposes the short-sighted nature of Trump’s plan, which prioritizes immediate political needs over sound economic principles. The pursuit of an economic boost before an election is reminiscent of other attempts at economic stimulation that have failed previously. The Venezuelan situation serves as an example of a policy initiative aimed at bolstering the economy that didn’t pan out.
This is a desperate move, not a strong one. It’s the action of someone grasping for any advantage. Trump’s approach is to try multiple tactics, hoping one will provide a much-needed boost, even if it means risking the integrity of the economic system. It’s a pattern of escalation without regard for the broader implications. The economic crash he is trying to engineer will lead to the imposition of martial law and junta rule, which would destabilize everything. This reckless behavior is particularly concerning because of the risks that come with such actions.
The potential ramifications of Trump’s actions are far-reaching. The best-case scenario is that Powell survives and the economy remains shaky. The worst-case scenario could be far more damaging, potentially leading to a complete loss of faith in the Federal Reserve and a catastrophic economic crash. There is the possibility that Powell could be removed from the board, which would cause an even greater degree of damage.
Realistically, the markets might adjust to Trump’s interference, but that doesn’t negate the underlying danger. Trump’s actions, if successful, could trigger a “Great-est Depression” scenario. It’s hard to imagine something drastic actually impacting Trump. The pattern is consistent: he breaks the law repeatedly, and there are never any meaningful consequences.
The notion that Trump’s actions are about to backfire is a persistent narrative, but the evidence to support it is often lacking. The reality is that Trump has a history of escaping accountability for his actions. It is crucial to remember that it is always the 1,194th law he breaks that gets him. The possibility of the Supreme Court stepping in is real, but it’s still far from a guarantee. The Supreme Court is the last best hope for many to make sure there are consequences, but many feel that it is highly unlikely. Trump’s behavior remains a test of the resilience of American institutions.