Guest Post By Maria Maalouf

President Donald Trump has repeatedly said that he will not fire the Federal Reserve Bank Chair Jerome Powell. But most likely he will remove Mr. Powell from the board of governors of the Fed Reserve. Trumps wants more control from the White House over the monetary policies of the United States Government. This will affect the value of the U.S. dollar and consequently it might drive down the interest rates on the American dollar. Yet, this is not an assured conclusion. A weak dollar as Mr. Trump desires will have many economic implications on the value of the exchange rate of the dollar versus so many countries in the world. It will impact the economies of the countries of the Middle East. It is crucial to analyze first why there is a feud between Trump and the chairman of the Fed Reserve Bank.

Trump felt during his Presidential campaign that Jerome Powell was trying to help Biden and later Harris get elected. He raised the interest rates on the dollar. Biden and Powell printed many dollars or greenbacks. Supply chains are still slow. The supply is little and the demand is big. As a result, inflation kicked off in the U.S. economy. It is still hurting the budgets of the American households. Raising interest rates was one way to increase bank deposits and stop the inflation trend.

It is expected that interest rates will go down when Trump assumes........

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