The war of words between the White House and the Federal Reserve has escalated again.

Trump has been on the offensive recently, directly calling Powell a "moron" and even suggesting that he himself should be running the Fed. His agenda is simple—rate cuts! Right now, U.S. Treasury interest rates are ridiculously high, putting huge pressure on the government budget. Lowering rates would directly ease the burden on the national treasury.

As for Powell? The head of the Fed responded coldly: The framework for monetary policy doesn’t depend on who’s president. In other words—no matter who’s in charge, rates aren’t coming down.

Why is he being so tough? Because domestic inflation in the U.S. still isn’t under control. If rates are cut now, prices could spiral out of control again, and the Fed doesn’t want to take the blame for that.

To put it bluntly, each side has its own priorities. Trump is focused on the federal government’s debt bill, while Powell is looking out for ordinary people’s grocery bills. One is desperate to loosen the grip of U.S. debt, the other is determined to hold the line against inflation.

America’s current situation is a bit like walking a tightrope—wanting low interest rates, but afraid of runaway inflation. Caught in the middle, it’s a tough spot.