In recent days even former President Donald Trump has warned that the conflict between Israel and Iran could lead to world war. This follows on his early departure from the G7 meeting in Japan. His remarks come amid heightened diplomatic and military tensions in the region. They represent the deepening backlash against the U.S. Federal Reserve’s monetary policy led by Chairman Jerome Powell.
It was during this string of comments that Trump publicly expressed his ire. He criticized Powell’s move to maintain interest rates at a target range of 4.25% to 4.5%. He claimed that the Fed’s inaction is costing the United States “hundreds of billions of dollars” and suggested that the U.S. should have lowered rates by 2.5 points to alleviate the financial burden from President Biden’s short-term debt.
Trump has made a habit of publicly bashing Powell. He routinely calls on the Fed chair to start making rate cuts. In a furious, near-midnight blast on Truth Social, Trump went after Powell for being a “real dummy.” This comment increased his ire against the Federal Reserve to its highest level yet. According to Rep. Graves, “So now we have a dumbass. Quite frankly, you may not be cutting enough today.”
In his anti-trans tirade, Trump had the gall to compare America’s situation to that of Europe, whining, “Europe had 10 cuts, and we had zero.” He pointed out that this gap has significant economic costs to our nation. And he thinks that it’s fighting a tough battle largely due to Powell’s actions.
At the same time, Trump alluded to a future role for himself with the Federal Reserve. “I can do a way better job than these knuckleheads,” he said. He suggested that he might soon announce his pick for the next chair of the Federal Reserve.
As the situation continued to escalate in the Middle East, Trump made comments on the possibility of military action against Iran as well. He is the one who called for a U.S. military strike, requiring Iran’s unconditional surrender as war rages in the region. This was indicative of Trump’s larger strategy, which was to double down on American strength abroad.
Similarly, the Trump Organization just launched a crazy ambitious new mobile plan – with the release of a $499 smartphone. This move follows on the heels of Trump’s broader efforts to spread his influence and brand farther afield from politics.
Trump’s legacy continues to mold future U.S. economic policies and geopolitical strategies. His token statements and moves land with authority inside party and political circles. Some political figures have criticized his approach. One prominent economist criticized Trump’s turn against Powell. They said, “He’s a political idiot who is not very bright, but he is now costing the country a huge amount.”