In a volatile election year, Federal Reserve Chair Jerome Powell's monetary policy initiatives just got harder.
A stronger-than-expected employment report Friday morning startled Wall Street, making the central bank more likely to explore interest rate reduction closer to Election Day. Powell said this week that a March cut was unlikely.
That puts the Fed in a crosshairs with politicians on both sides of the aisle who will blame Powell if the cuts are too early or late
Republicans like Republican frontrunner Donald Trump, who warned Powell Friday, may increase pressure.
Trump said, "it looks to me like he's trying to lower interest rates for the sake of maybe, getting people elected." "I think he's political," the former president told Fox Business' Maria Bartiromo Friday morning.
Trump also said he wouldn't reappoint Powell in 2026 and said he has ideas for a successor, but "I can't tell you now."
Trump elevated Powell to his present job in 2017, but he immediately turned on him. There is no indication that Republican Powell is advocating for party-biased monetary policy.
Powell dodged questions about whether he wants a third term and the political pressure from Trump and other Republicans this week.
STAY TURNED FOR DEVELOPMENT