Donald Trump is angry at Jerome Powell because interest rates stay high. Mr. Powell leads a group called the Federal Reserve that decides how much money it costs to borrow. Trump thinks Powell caused prices to go up and isn't fixing the problem.
The Federal Reserve often changes these money rules. Sometimes, they make it very cheap to borrow money, which helps big banks and rich people buy more things. This happened in 2008 when many Americans lost their homes and jobs. The same thing happened again in 2020 when small shops had to close during lockdowns.
In 1981, they made borrowing money very expensive. Many people couldn't afford their houses anymore, and the stock market fell. Big banks bought everything at low prices. The Federal Reserve did this again recently. They waited a long time to fix high prices, and many people lost money in stocks and houses.
People think the Federal Reserve does bad things. Some leaders at the Federal Reserve had to quit their jobs because they traded stocks when they weren't supposed to. A special check in 2011 found they gave lots of secret money to big banks like Goldman Sachs and JPMorgan. Someone named Carmen Segarra told everyone in 2012 that the Federal Reserve wasn't following the rules properly.
Many people who work at the Federal Reserve later work at big banks, where they make lots of money. This makes some people think they help banks more than regular people. When the Federal Reserve changes the rules about money, it often helps rich people make more money but hurts regular families who are trying to save their money.
The Federal Reserve often changes these money rules. Sometimes, they make it very cheap to borrow money, which helps big banks and rich people buy more things. This happened in 2008 when many Americans lost their homes and jobs. The same thing happened again in 2020 when small shops had to close during lockdowns.
In 1981, they made borrowing money very expensive. Many people couldn't afford their houses anymore, and the stock market fell. Big banks bought everything at low prices. The Federal Reserve did this again recently. They waited a long time to fix high prices, and many people lost money in stocks and houses.
People think the Federal Reserve does bad things. Some leaders at the Federal Reserve had to quit their jobs because they traded stocks when they weren't supposed to. A special check in 2011 found they gave lots of secret money to big banks like Goldman Sachs and JPMorgan. Someone named Carmen Segarra told everyone in 2012 that the Federal Reserve wasn't following the rules properly.
Many people who work at the Federal Reserve later work at big banks, where they make lots of money. This makes some people think they help banks more than regular people. When the Federal Reserve changes the rules about money, it often helps rich people make more money but hurts regular families who are trying to save their money.
