Just a day after the head of the Federal Reserve, Jerome Powell, once again refused to lower interest rates to respond to an uncertain economic outlook, President Donald Trump gave him a very direct threat about his future as chairman. Wonder if such a suggestion, shall we say, from the president will change his perspective?
Powell, who has consistently been a pain in the president’s backside, stood against his call to go ahead with lower rates, which led to Trump giving the chairman a sharp rebuke and warn him that if he doesn’t get on board with his plan he could be in the market for a career change.
While the European Central Bank is looking to lower rates for a seventh time, “‘Too Late’ Jerome Powell… who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’” Trump said in a social media post published early Thursday morning.
“The Fed chair has urged patience while the nation’s central bank weighs next steps. At a conference on Wednesday, Powell warned that the administration’s tariff policies have created a ‘challenging scenario’ for economists to predict where the U.S. economy will head over the next quarter,” Trending Politics News said.
“Part of Powell’s speech conveyed that the Fed has wide latitude to be patient with its interest rate decisions until it has more clarity about Trump’s economic policies, according to the New York Times. To Trump, the delay tactics signal something else: a fiddling Fed in need of a new leader,” the report added.
“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” his Truth Social post finished.
Powell, in an attempt to defend himself and his actions, said that it’s a “matter of law” that the Fed operates outside of political influence, repeating that many folks in the nation’s capital agree with him.
It is “very widely understood and supported in Washington and in Congress where it matters,” he said. “People can say whatever they want. That’s fine. That’s not a problem, but we will do what we do strictly without consideration of political or any other extraneous factors,” he continued.
The rates are set by the Fed’s Board of Governors, which consists of seven members of the central bank appointed by the president, along with a set of five presidents from regional reserve banks.
“Despite the uncertainty around tariffs, the White House has healthy economic indicators to make its point that its policies are working. The U.S. Labor Department shattered expectations with its March jobs report showing employers added 228,000 positions, far more than the 140,000 economists expected and a sign that the optimistic outlook for business expansion is growing. Unemployment was largely steady at 4.2%, up from 4.1% in February,” the report concluded.
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