The US president threw shaming on Federal Reserve Chairman Jerome Powell, calling for the Federal Reserve to cut interest rates.
WASHINGTON, DC — US President Donald Trump has called on the Federal Reserve Committee to take control of the central bank from Chairman Jerome Powell and lower interest rates.
In a series of social media posts on Friday, Trump has been asking for interest rates to be cut for months, but has escalated an attack on Powell, suggesting that the central bank chief should be stripped of his powers.
“The stubborn idiot Jerome ‘too late’ Powell now has to cut interest rates significantly,” Trump wrote.
“If he continues to refuse, the board should assume control and do what everyone has to do!”
Trump later added that Powell should also be “putted on the pasture.”
Earlier this week, Powell announced that interest rates remained stable at 4.25-4.5%.
Central bank fees indirectly set the fees for private lending nationwide.
If the Federal Reserve, known as the Fed, sees the need to accelerate economic activity, it cuts interest rates, reduces borrowing costs, and puts money into the economy.
Conversely, when prices rise rapidly, the Fed will raise interest rates and put the cost of living under control.
Central banks operate independently of political authorities.
Interest rates plummeted during the Covid-19 pandemic, preventing a prolonged recession during lockdown.
However, as supply chain disruption and economically abundant money sparked an inflation crisis in 2022, the Fed hiked interest rates to levels not seen since the Great Recession of 2008.
Trump, advocate for greater investment in the US economy, claims that inflation is currently at a sustainable level, so interest rates don’t have to remain high.
Over the past year, central banks have cut interest rates by about 1%, but Trump has called for more aggressive cuts.
On Wednesday, Powell cited the risks of inflation related to Trump’s trade policy as the reason behind his decision not to lower interest rates.
“While prices on some products are beginning to show higher tariffs more clearly, we have not yet seen the overall impact on economic activity and inflation,” he told reporters.
Earlier this month, government reports showed consumer prices rose 0.3% from May to June, compared to 0.1% the previous month, as Trump’s tariffs began to set.
Powell did not rule out that price increases could be “short-lived,” but insisted on a cautious approach while monitoring inflation, warning that it could be sustainable.
“For the time being, we are well positioned to learn more about the evolving balance of potential economic courses and risks before adjusting our policy attitude,” he said. “We believe that our current policy stance is appropriate to prevent inflation risk.”
The decision proved controversial, with the Fed committee seeing rare opposition from two Trump appointees who publicly advocated for more interest rate cuts.
On Friday, Trump warned Powell that his dissent would “just become stronger.”
“It’s too little, too late,” the US president wrote. “Jerome: “Too late” Powell is a disaster. Please lower the rate! The good news is that tariffs are bringing billions of dollars into the US! ”
