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The Guardian - UK
The Guardian - UK
Business
Richard Partington Senior economics correspondent

Trump’s attempts to influence Fed risk 1970s-style inflation and global backlash’

Trump and Powell, wearing hard hats, study a document at the Federal Reserve
Donald Trump in July with Federal Reserve chair, Jerome Powell, right, who has suggested a legal threat against him is about applying pressure in order to engineer a cut in interest rates. Photograph: Julia Demaree Nikhinson/AP

Donald Trump’s attempts to influence the US Federal Reserve could risk plunging America into a period of 1970s-style inflation and trigger a global backlash in financial markets, economists have warned.

After the US Department of Justice (DoJ) launched a criminal investigation into Jerome Powell, the current Fed chair, investors said efforts by the White House to pressure the US central bank to cut interest rates would put the world economy at risk.

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