The US President delivered insults to the President of the Federal Reserve, Jerome Powell, and renewed the Federal Reserve calls to reduce interest rates.
Washington, DC, President of the United States Donald Trump The Federal Reserve called for controlling the central bank from the Chairman of the Board of Directors Jerome Powell and low interest rates.
In a series of social media publications on Friday, Trump – who called for reducing interest rates for several months – raised his attacks on Powell, indicating that the head of the central bank should be stripped of his powers.
“Jerome” is very late, “Powell, a stubborn fool, must reduce interest rates to a large extent, now,” Trump books.
“If he continues to reject it, the council must bear control, and do what everyone knows!”
Earlier this week, Powell announced that interest rates will It remains fixed In 4.25 to 4.5 percent.
The central bank rates are indirectly determined by special lending prices throughout the country.
When the Federal Reserve, known as the Federal Reserve, sees the need to accelerate economic activity, it reduces interest rates to reduce the cost of borrowing and pump money to the economy.
On the contrary, when prices rise very quickly, the Federal Reserve raises interest rates to achieve the cost of living under control.
The central bank works independently of political officials.
During the Covid-19s, interest rates fell to prevent prolonged recession during the lock.
But with the interruption of the supply chain and the abundance of money in the economy, it was ignited The inflation crisis In 2022, the Federal Reserve climbed interest rates to levels that have not been seen since the 2008 great recession.
Trump, a defender of greater investment in the American economy, was arguing that inflation is now on sustainable levels, so there is no need for interest rates to remain high.
During the past year, the central bank reduced interest rates by 1 percent, but Trump was calling for more aggressive discounts.
On Wednesday, Powell cited the risk of inflation associated with Trump Commercial policies As a reason behind his decision not to drop interest rates.
He told reporters: “The high definitions began to appear more clearly at the prices of some commodities, but their total effects on economic activity and inflation still should still be seen.”
Earlier this month, a Government report It showed that consumer prices rose 0.3 percent from May to June, compared to 0.1 percent in the previous month, as Trump’s tariff began to enter.
Powell did not rule out that the rise in prices may be “short -term”, but he also warned that he might become fixed, and argues in a cautious approach while monitoring inflation.
“At the present time, we are in a good position to learn more about the potential path of the economy and the advanced balance of risks before setting our position on politics,” he said. “We see our current political position suitable for protecting against the risks of inflation.”
The decision proved that it was controversial, as the Federal Reserve saw a rare opposition from two members, both of whom were appointed by Trump, who publicly argued about more price cuts.
Friday, Trump warned Powell that the opposition “You will only be stronger“.
“Very little, very late”, the American president books. “Jerome” is too late. Powell is a disaster. Driving the rate! The good news is that the definitions bring billions of dollars to the United States of America! “
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