Donald Trump’s growing clash with the US Federal Reserve is starting to look familiar to economists who have seen this story before.
former central bank chief Martin Redrado says Trump’s pressure on the Fed reminds him of events that once pushed his own country toward economic chaos. Although he won his legal case, the pressure became unbearable, forcing him to resign.
That Argentina’s later economic collapse, marked by runaway inflation and a steep fall in its currency. The country is still struggling to recover. Because of this history, Redrado believes the US should take Trump’s actions seriously.
Since returning to office last year, Trump has openly criticized Federal Reserve Chair Jerome Powell. He has accused Powell of keeping interest rates too high. These attacks have gone beyond public statements and social media posts.
In August, Trump attempted to remove senior Fed policymaker Lisa Cook. That move is now under review by the US Supreme Court. More recently, Powell revealed that the Department of Justice has launched a criminal probe linked to cost. Powell has dismissed the investigation, calling it an excuse to justify political pressure.
So far, financial markets have stayed calm. Analysts say this suggests investors still believe the Federal Reserve can operate independently, despite growing political interference.
In the coming weeks, the Supreme Court will hear arguments related to Cook’s dismissal.These decisions could reshape the balance between politics and monetary policy in the United States.
For critics, the concern is clear. History shows that when political leaders push central banks beyond their legal limits, the economic consequences can be severe. The question now is whether the US can avoid the path that other countries, like Argentina, were unable to escape.
