Smotrich’s threats lead “Israel” to economic crisis

QUDS, Sept. 05 (YPA) – The Hebrew economics newspaper, Calcalist, warned on Friday of the repercussions of statements made by Israeli Finance Minister Bezalel Smotrich, who publicly threatened to cut taxes if bank of “Israel” governor Amir Yaron did not respond to his request for an interest rate cut.

The newspaper described the matter as a deadly economic cocktail on the Israeli occupation.

It noted that Smotrich’s pressure could ignite markets and lead to an inflationary explosion, potentially pushing the Israeli economy toward a deep financial crisis and undermining investor confidence both domestically and internationally.

The newspaper added that this threat was just a copy of previous experiences in the United States, when US President Donald Trump publicly pressured Federal Reserve Chairman Jerome Powell to cut interest rates, sparking widespread controversy over the independence of monetary policy.

Calcalist warned that politicizing monetary decisions would weaken the most stable pillar of any economy, emphasizing that compromising the independence of the financial institution could, in the long term, lead to a complete loss of confidence in the monetary system.

AA