Trump urges Congress to barbed Powell “stupid, difficult” in the last attack on the Federal Reserve’s refusal to reduce interest rates

The President of the Federal Reserve will appear before Congress today and tomorrow, first in front of the Financial Services Committee in the House of Representatives on Tuesday morning and again before the Senate Banking Committee on Wednesday morning.

Powell will be given the opportunity to justify the reason for his rejection and other members of the Federal Open Market Committee (FOMC) so far in 2025 reduced the basic rate of its current level of 4.25 % to 4.5 %.

FOMC president was consistent with his thinking, as he distanced himself from political discourse, but he still faces criticism from economists who say his narrow critical stance is relatively unjustified.

Trump urged politicians at the two meetings this week to pushing Powell strongly because of not reducing the basis price – and giving the president his desire.

Writing on social truth Several hours ago, Trump said: “I hope that Congress will really work this very stupid person, who is very difficult. We will pay the price of his incompetence for many years to come.”

Trump’s justification is based on payment to partially reduce the rate on the fact that the other Central banks have started all over the world He added: “Europe has eased their own policy:” Europe had 10 discounts, we had no zero. There is no inflation, a large economy – we must have at least points to three points.

“It would provide the United States of America $ 800 billion annually, in addition. What is the difference that this will happen. If things change later to negativity, then increase the rate.”

This payment to reduce rates is the opposite of Trump’s demand for the campaign trail last year. While running for the presidency, Trump claimed that Powell was playing politics and would hand over the Biden camp as an economic blessing if he was cut off.

Once he wins the Oval Office, changed Trump Tak and began to ask Powell to reduce – it was useful to the economy stable enough to maintain a lower rate and increase economic activity.

It can be said that this shows the reason for the central bank’s mandate from the federal point Unlike the whims of the Oval Office.

Powell and FOMC were clear about the reason they did not want to reduce, noting the factors that might put their double side – employment on the maximum and inflation by 2 % – in the conflict.

The keywords of the past few meetings were “clarity” –Instead, FOMC members want to wait for more concrete Data before starting to draw a path towards more natural interest rates.

While the role of FOMC is not a comment on politics, it has pointed to political factors such as Ability pressures from customs tariffs and political geography.

Although markets may prefer to reduce, what frightens analysts and investors alike is when Trump’s pressure on the basic rate to the tampering questions.

When Trump threatened to dismiss Powell earlier this year, for example, the market reaction was negatively with investors Warning against expecting a “severe” decrease in asset prices If the president goes further in bringing the authority of the Federal Reserve Bank and its independence.

Trump I retreated quicklyAnd Powell – who was appointed for the first time by the president in his first term – will sit for his term, due to the end in 2026.

It’s time to change

While Trump’s demand – that FOMC’s rejection of the basic price has cost the economy $ 800 billion – without explanation, some economists are widely believed that Powell should not be based on current decisions regarding potential inflationary factors on the line.

For example, the Oval Office has changed its position on the customs tariff several times, whether by stopping for 90 days, agreements with certain countries, or threats of a greater rise in the likes of the European Union.

But experts point out that the most end of these threats are not yet achieved, and that both inflation data and employment data have been somewhat constant during the past few months.

Jeremy Sigil, a professor of honorary financing at Warton College at the University of Pennsylvania, writes, for example, “Treating the price of taxes caused by taxes does not justify that there is an input tax. 3.5 % – to match the real neutral rate of the economy.”

Writing for WisdomtreeWhere he is a large economic expert, he will notice that the ruler of the Federal Reserve, Chris Walir, has argued in a possible July prices, adding: “Is it a test to be a Powell alternative? I agree with Walir, we are much higher than the neutral rate with the upcoming customs tariffs.”