Trump’s Relantless Attacks on Fed May Detepen Policy Lag, Sands USD LOWER

Trump’s Relantless Attacks on Fed May Detepen Policy Lag, Sands USD LOWERPresident Trump’s Relantless Attacks on the Fed Risk Triggering Reflexive Stubbornness Among Policymakers.Updated Sep 21, 2025, 3:20 pm PUBLISHED SEP 21, 2025, 3:16 PM

One of the most Controversial Features of President Donald Trump’s Second Term Is His Releentless Criticism of Federal Reserve (Fed) Chair Jerome Powell For Maintaining Elevated Interest. Unnecessarily Costly to the American Economy.

But this is more than just rhetoric. Trump is aggressivly attempting to undermine the Fed’s Board, Threatening An Institution Long Known for Its Political Independence. Ironically, this very assault risks backfering, deepening what Trump and other descripts as a fed that is “Behind the Curve,” Potentilly Leading to a Deeper Sell

“Political Pressures Make It Toup to Credibly Shift to An Ortly Dovish Footing. That Leaves Policy Data Driven (Thus Late) Led by Nicholas Kennedy, Said in A Note to Clients on Sept. 18.

Last Thursday Marked A New Chapter in Trump’s Campaign Against The Central Bank, as His Administration Took The Unprecedated Step of Petting the US Supreme Court to Allowere. This would be the First Forced Removal of A Sitting Fed Governor Since the Institution’s Founding in 1913.

The Move Followed A Tempoury Judicial Block Issued by US District Judge Jia Cobb, Who Prevented The Ousting of Cook, A Biden Appeinte, PENDING FURTHER LEGAL PROCEEDINGS.

Accorness to the Lloyds Bank Market Insights Team, Such Attacks Are Likely to Increase As Powell Enters the Final MONHS OF HIS TERM as Chairman. Trump’s Recent Appointee at the Fed, Stephen Miran, Is Already Calling for Rapid-Fire Rate Cuts and Wants The Bank to Reduce Borrowing Cost by 50 Basis Points in the Recently Conce.

Behind the CurveAT ITS CORE, TRUMP’S CAMPAGN REFLECTS A Desire for a Fed More Responsive to His Economic WorldView, Which Demands Ultra-Low Rates AUND 1%, Down Signified.

Trump has argued that Current Rates Kieep Mortgage Costs Prohibitively High for Many Americans, Hindering Homeownership and Imposing Billions in Unnecary Debt Refincking Exentsing Exaness. He Frames this as a staggering missed opportunity on and the “phenomenal” Economy. Meanwhile, Many Economists Agree That Rates Remain Too High Given Signs of Weakening Labor Markets and Consumer Health.

Thus, The Federal Reserve is Widly Perceived As “Behind The Curve” – ​​A Technical Term Meaning It Is Too Slow to Cuts Rates in Response to Evolving Economic Conditions.

Yet, Trump’s Insistency on Forcing Faster Rate Cuts Risks Pushing the Fed Further Behind this Curve.

Damned if they do, damned if they don’tImagine Holding the Reins of the World’s Most Powerful Central Bank, Responsible Not Only for the World’s Largest Economy, But The Fate of the Global Reserve Currency, the USD. Now Imagine the Political Pressure to Cuts Quickly, Against The Fear of Appearing Political Compromised. This Leaves Policymakers Damned If They Act And Damned If They Don.

SO, Unlike Typical Policymakers Who Adjust with Measured Calm in Respons to Data, Powell and His Colleagues Now Operate Under Intense Political They a Classic Catch-22: Face Accusations of Succumbing to Political Pressure in Case of Rapid Rate Cuts (Even If They Do SO Independently); Wait Too Long and Risk The Potential Defeering of An Economic Slowdown.

This Dynamic Could Breed Reflexive Stubbornness. To avoid accounting to Political Pressure, The Fed May Instinctively Lean Towards Caution – Waiting Longer and Keeping Rates Elevated. However, this Posture Can Exacerbate The Problem: Delayed Rate Cuts Keep Monetary Out of Sync with Economic Conditions, Much Like A Patient Who Resists MILD. Fever Spikes.

The Subsequent High Doses of Rate Cuts Could Be Interpreted by Markets as A Sign of Panic, Leading to Increasted Volatility in Financial Markets, Including Cryptocurrencies.

Dollar at RiskThe Catch-22 Sity Could Also Weight on the US Dollar, A Bullish Development for Dollar-Denominated Assets Like Gold and Bitcoin.

The Dollar Index, WHICH MEASures the GreenBack’s Value Against Major Currencies, Has Droped Nearly 10% This Year to 97.64. Meanwhile, Bitcoin’s Price Has Rallied by 24% to $ 115.600.

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