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Trump speaks again about Powell's position: The political game between market disruptions and the independence of the Federal Reserve.

Trump's dissatisfaction with Powell has a long history, primarily stemming from his belief that the Federal Reserve's monetary policy (such as interest rate hikes) hinders his economic agenda. He favors a more accommodative monetary policy from the Federal Reserve to stimulate economic growth and boost the stock market.

Trump's remarks clearly indicate that he wants the position of the Federal Reserve Chairman to be highly aligned with his economic goals as President. This is a typical manifestation of using central bank tools to serve short-term political interests.

"They say this will disrupt the market" is the key sentence. It shows that Trump is making a strategic trade-off between expressing personal desire and avoiding immediate chaos in the financial markets. He knows well that forcibly removing Powell during his term would be seen as a blatant attack on the independence of the Federal Reserve, potentially leading to a collapse of investor confidence and triggering a stock market crash. This is contrary to the "prosperity" he hopes to see.

The independence of the Federal Reserve is the cornerstone of its credibility and effectiveness. It allows the Fed's decision-makers to formulate monetary policy based on economic data rather than political pressure. If the tenure of the Fed Chairman depends on the personal preferences of the President, then the Fed's decisions will be seen as the result of political intervention rather than based on professional economic analysis. This would severely undermine the Fed's credibility and lead to a loss of market trust when facing challenges like inflation. Historical experience shows that when central banks yield to political pressure, they tend to adopt overly accommodative monetary policies, resulting in runaway inflation. This is also one of the main reasons why central banks worldwide generally pursue independence. The market's certainty regarding the Fed's policies is highly dependent on this independence. If the position of a Fed Chairman can change at any time for political reasons, it will create significant uncertainty for the market, affecting investment decisions and long-term planning.

Although Trump stated that he would wait until Powell's term ends, this remark itself has already conveyed a clear signal, affecting the market and future Federal Reserve policies. Trump's comments may prompt the market to begin to anticipate Powell's possible replacement after his term ends. This will spark discussions and speculations about the future direction of Federal Reserve policies. Although Powell's term may not be terminated early, this public pressure from the White House will undoubtedly complicate his upcoming policy decisions. Regardless of whether Powell is ultimately replaced, this event will become an important political legacy. It clearly illustrates the tension between political power and monetary policy-making authority, and may continue to influence the debate on central bank independence in the United States and globally.

Trump's remarks about Powell are not merely a simple personal feud; they reflect the profound contradiction between politicians' pursuit of economic goals and the independence of the Federal Reserve. His choice to wait until the end of his term to make a decision is a rational choice weighing short-term market stability against long-term political objectives. This statement alone is enough to alert the markets and once again emphasizes how critical the Fed's independence is for maintaining financial stability and investor confidence in an uncertain macroeconomic environment.