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Trump's threats to fire the Fed chair and raise tariffs will decimate the dollar

The Observer

|

July 20, 2025

Understanding what motivates normal politicians to follow bad economic advice is difficult enough.

- Kenneth Rogoff

Are they paying off some special interest, or do they really believe that two plus two equals three? With Donald Trump, the difficulty of interpreting the motivation for his policies sometimes goes to a whole different level.

Does he understand that if he fires Federal Reserve chair Jerome Powell, the Fed will lose anti-inflation credibility and the general level of interest rates will rise, not fall? Does he really believe that Team Trump can design regulation that makes the crypto sector grow to the moon - bitcoin hit $120,000 (£89,000) last week - without causing another financial crisis?

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time to read

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