President Trump unleashed an unprecedented rant against Jerome Powell, Chair of the Federal Reserve during a live interview on Fox Business Network on Wednesday.
Trump described Jerome Powell as an unknown who only rose to prominence because he, Trump appointed him to lead the Fed.
Responding to host Maria Bartiromo's question about the European Central Bank, he praised the ECB's Mario Draghi for taking measures to stimulate the eurozone economy; and contrasted Draghi's stimulus with Powell interest rate hikes saying, "here's a guy - nobody ever heard of him before. And now, I made him, and he wants to show how tough he is. Let him show how tough he is. He's not doing a good job."
President Trump underlined his frustration with the Fed Chair, saying that he had the power to demote or fire Powell because he thought that he was not acting in the interest of the US.
Trump praised the efforts of the ECB to stimulate the eurozone economy by lowering interest rates as well as buying financial assets, and believes Powell should have adopted a similar approach.
He accused the Fed of operating like a vacuum cleaner and sucking up so much money out of the US economy.
President Trump's rant against Jerome Powell is nothing new, as he has done this a number of times in the past, however this time around he sounded unhinged and seemed to have lost the plot.
So why is Trump so mad at Powell? The answer is ultimately politics - as Trump is currently in election mode for the 2020 presidential election.
The economy is one area where the electorate feel that the president is doing a good job. Trump understands the importance of a good economy to any president's prospects for reelection and he is determined that no one is going to spoil his chances. Even if this means undermining Jerome Powell's authority.
Trump is worried that if Powell raises interest rates, that will put a dampener on the stock market, which in turn could slow down economic growth.
Trump has tied himself firmly to the fortunes of the stock market and the economy and never misses an opportunity to take credit for rises in the stock market and growth of the economy. If things were to go south, then his chances of reelection could evaporate.