Trump's call for Powell's departure from the Federal Reserve isn't solely based on interest rates, but also due to other factors.

In the world of politics and economics, two figures have been making headlines for their respective roles in shaping the financial landscape of their respective eras: Jerome Powell, the current Federal Reserve Chair, and Mike Dukakis, a former Democratic presidential candidate.

Jumping back to 1988, Mike Dukakis was leading the presidential race against George H.W. Bush. However, a series of missteps, including a controversial photo-op in a battle tank with an army helmet, led to a public perception of Dukakis as a pointy-headed dork who was unfit for the US presidency. This scene serves as a suitable metaphor for Dukakis' election loss, and it seems that Jerome Powell's future may face similar questions.

Fast forward to 2017, Jerome Powell was appointed as the Federal Reserve Chair by President Trump. From the get-go, Trump and Powell butted heads, with Trump wanting lower interest rates while the economy was roaring. However, Powell initially resisted Trump's demands, only to eventually start slashing interest rates.

This move, made during the COVID-19 pandemic, left the Fed with fewer policy measures when lockdowns hit. Powell used the Fed's dry powder to print money excessively, a decision that was met with both praise and criticism. The inflation hit 9.1% before Powell began to raise rates, a move that some economists consider one of the worst policy mistakes ever made by a Fed chair.

Powell seemed to be working with Biden's inept Treasury Secretary Janet Yellen to spin the inflation as "transitory". But as the inflation persists, questions about Powell's independence and his future as Fed Chair are being raised.

In contrast, Trump chose to tour the Federal Reserve's unfinished $2.5 billion "Taj Mahal" headquarters to make Powell look uncomfortable, while Trump appeared comfortable. One reason Powell should be fired is that he is not independent, a claim that has been echoed by some critics.

The Federal Reserve Act of 1913 grants the central bank a large degree of autonomy. However, the autonomy has been tested under Powell's leadership, with Trump's constant pressure and the ongoing debate about the future of monetary policy.

As the debate about Powell's future as Fed Chair continues, there are rumours of potential candidates, including former Fed-Notenbanker James Bullard. Only time will tell who will take the reins of the Federal Reserve and steer the economy through the challenges ahead.