As the political landscape shifts, US President-elect Donald Trump has left many speculating about his intentions regarding key economic figures and policies. On one hand, he has affirmed his plan to retain Jerome Powell as Federal Reserve Chair, but on the other, he’s made headlines with threats towards BRICS member countries relating to currency practices.
Trump Keeps Powell—For Now
In a recent interview with NBC News, Trump stated, “No, I don’t think so. I don’t see it,” when questioned about removing Powell from his position. This comes as a surprise to some, considering his history of conflict with the Fed Chair over interest rates.
- Trump expressed that Powell wouldn’t leave quietly if asked.
- Powell’s current term extends to 2026, following Biden’s reappointment.
- The dynamic between Trump and Powell includes past criticisms during Trump’s first term.
Interestingly, Trump has been vocal about lowering borrowing costs for American families, raising concerns about potential clashes with Powell’s decisions, especially given recent predictions that the Fed might cut interest rates in mid-December 2024.
BRICS Faces New Challenges
Simultaneously, Trump has turned his focus to the BRICS nations—comprising Brazil, Russia, India, China, and South Africa—urging them to refrain from creating or supporting any alternative to the US dollar. The threat of imposing tariffication, as severe as 100%, has stirred a reaction.
- Russian Deputy Foreign Minister Alexander Pankin indicated that BRICS is proceeding with a settlement system, dismissing the idea of developing a new currency.
- This development indicates BRICS’s intent to strengthen financial ties independent of the US dollar.
With such mixed signals from Trump’s administration, the Western and BRICS economies might be bracing themselves for a significant reconfiguration of international financial relations.