Behind Trump vs. Powell Is a Battle Over US Empire’s Future
Jacobin • • business
Key Points:
- The Department of Justice has opened a criminal investigation into Federal Reserve Chair Jerome Powell for allegedly misleading Congress about refurbishment costs, widely seen as a politically motivated attack linked to President Trump’s broader campaign against political opponents.
- This conflict reflects a power struggle between an assertive U.S. president seeking control over interest rate policy and an independent Federal Reserve that plays a central role in the global financial system, rather than a simple democracy-versus-authoritarianism clash.
- Trump’s efforts to influence the Fed threaten the established global dollar liquidity system, which supports foreign central banks through swap lines and credit facilities crucial for financial stability, prompting solidarity statements from international central bankers like ECB President Christine Lagarde.
- The Trump administration’s plans to control frozen Russian
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