Summary of "Trump défie l’indépendance de la Réserve fédérale | Décryptage | ARTE"

Conflict Between Donald Trump and the Federal Reserve

The video analyzes the escalating conflict between former U.S. President Donald Trump and the Federal Reserve (Fed), focusing on Trump’s attempts to influence the central bank’s monetary policy by pressuring it to lower key interest rates. Jerome Powell, the Fed chair appointed by Trump in 2017, resists these demands to maintain the Fed’s independence, a principle considered crucial for economic stability.

Background of the Federal Reserve

The Fed was created in 1913 after the 1907 financial crisis to provide liquidity during economic turmoil. It has a dual mandate:

Ensure price stability by keeping inflation and interest rates moderate
Support full employment

Although Fed governors are nominated by the president and confirmed by the Senate, they are expected to operate independently from political pressures. Historical precedents, such as President Nixon’s interference in the 1970s, showed the dangers of politicizing monetary policy, which led to runaway inflation.

Trump’s Pressure on the Fed

Since Trump’s return to power, he has intensified pressure on the Fed, including:

Attempts to remove Biden-appointed governor Lisa Cook
Efforts to install his economic advisor Stephen Miran, a proponent of tariffs and lower rates

Trump criticizes Powell despite having appointed him, aiming to boost the economy ahead of the 2026 midterms by lowering interest rates, even though inflation and unemployment remain problematic.

Political and Legal Tensions

Tensions peaked when Powell was summoned to court in January 2026 amid allegations related to Fed headquarters renovation costs. This investigation is widely seen as politically motivated.

This move alarmed international central bankers, who jointly emphasized the critical importance of central bank independence for global financial stability. They warned that undermining the Fed’s autonomy could destabilize the international economy, given the central role of the U.S. dollar in global liquidity networks.

Risks of Politicizing the Fed

The video highlights several risks associated with politicizing the Fed, including:

Potential for a financial crisis reminiscent of the 2007-2008 subprime mortgage crash
Ripple effects on the European economy
Threats to individual banking stability

However, institutional checks remain in place:

The U.S. Supreme Court can block unjustified firings of Fed governors
The Senate can oppose Trump’s nominations, though this depends on political will within the Republican Party