US President Donald Trump criticized Federal Reserve Chair Jerome Powell on Thursday, stating that his departure from the central bank “cannot come fast enough” as he called for immediate interest rate cuts. Trump took to his social media platform Truth Social to express his frustration, saying that Powell should have lowered interest rates sooner and should definitely do so now.
This comes after Powell emphasized the importance of the Fed’s independence and warned about the potential consequences of Trump’s tariffs on trade partners. Trump has continuously urged for interest rate cuts, but the Fed has maintained a wait-and-see approach, keeping rates steady at 4.25%-4.50%. Trump has even threatened to fire Powell in the past, leading to speculation about the Fed chair’s future.
Powell, however, remains focused on the Fed’s role in managing monetary policy, stating that the central bank’s credibility is crucial not only for the US economy but also for global markets. He was initially nominated by Trump in 2017 and appointed to another four-year term by President Joe Biden in 2022. Despite the tensions between Trump and Powell, the Fed chair has indicated that he will not resign if asked to do so.
As the debate between Trump and Powell continues, the future of interest rates and the Fed’s independence remain uncertain. The decision-making process of the central bank will play a crucial role in shaping economic policies in the US and globally.
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