Morgan Stanley exec says Trump’s threats to Fed chief Powell is “noise”
President Donald Trump’s recent comments against Federal Reserve Chair Jerome Powell are “noise,” says Katerina Simonetti, a senior executive at banking giant Morgan Stanley.
Simonetti, senior vice president and private wealth advisor at Morgan Stanley, downplayed Trump’s attacks on Powell during an interview with CNBC’s Fast Money.
According to Simonetti, this isn’t the first time Trump has slammed the Fed chair. He did so in 2019 as well, at the time describing Powell as a “golfer who can’t putt.” The latest outburst comes amid Trump’s dissatisfaction with how the Federal Reserve under Powell has handled the issue of interest rates, criticizing the central bank chief as always being “too late.”
Trump’s rhetoric regarding interest rates and monetary policy often reflects his political strategy rather than a balanced economic critique, according to analysts. “This isn’t economic policy, it’s campaign noise,” Simonetti reiterated.
The Federal Reserve has remained independent in its decision-making, and Powell has previously stated that the institution is not swayed by political pressures. Analysts agree this is unlikely to change, even with political jabs from high-profile figures.
Meanwhile, markets have largely ignored the former president’s comments, focusing instead on inflation data and employment figures due later this week.
Simonetti also noted that investors should remain focused on long-term trends and not be distracted by sensational headlines. “We encourage our clients to block out short-term political noise and stick to fundamentals,” she said.
Trump’s comments may energize his base, but financial experts say the Federal Reserve’s decisions will be driven by data, not discourse.
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