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Published on Friday, September 5, 2025

Peru | Trump vs. the Fed: The dog chasing its own tail

Summary

The article analyzes the dangers of political interference in central bank decisions, in reference to the recent actions of the President of the United States, Donald Trump, and his attack on the institutional framework of the Federal Reserve.

Key points

  • Key points:
  • President Trump's political pressure on the Fed backfires by paradoxically raising the long-term interest rates he would like to see reduced.
  • Interference with the U.S. Fed directly harms emerging economies like Peru by increasing borrowing costs.

Geographies

Documents and files

Press article (PDF)

Press article

Spanish - September 5, 2025

Authors

MO
Marco Ortiz BBVA Research - Principal Economist
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