Trump slams Fed chairman Jerome Powell over interest rates

The president of the United States, Donald Trump, criticized the president of the Jerome Powell Federal Reserve on Thursday, April 17, for not reducing interest rates, calling him “always too late and bad.” “Powell’s termination can’t get quickly enough,” Trump wrote on his real social platform. “Too late should have reduced interest rates, such as the ECB, a long time ago, but it should certainly reduce them now.” Trump has repeatedly urged Powell to reduce interest rates, but the US Central Bank has adopted an attitude of waiting and seeing, maintaining stable rates at 4.25 to 4.5% from the beginning of this year.

The president of the Central Bank, Powell, warned Wednesday that Trump’s radical tariffs on the virtue of each United States shopping partner could feed themselves in the unvoyable position of having to choose between addressing inflation and unemployment.
The Stop-Stop-Stop’s tariff policy of Trump has baffled investors and commercial partners, leaving them insecure of their long-term strategy and what it could mean for international trade.

Powell intends to stay despite clashes

The Republican has frequently criticized the president of the Fed, who originated his first term, accusing Powell of playing politics in his role in the Independent Central Bank. In the campaign in August, Trump gave you the independence of the White House suggestion that should “say” when establishing a monetary policy.

Speaking on April 4, Powell insisted that he had no plans to resign as president of the Fed before his mandate ends next year. “I intend to fulfill all my mandate,” he said in an event in Virginia.

While the presidents have a long history of confrontation with the Fed bosses, any transfer to Forcell to leave office is not precedents in the modern political history of the United States. The president of the United States does not have the authority to fire the governors of the Federal Reserve directly. Instead, Trump could, if he chooses, start a legitimate process to try to overthrow Powell by proved “cause” to do so.

Higher interest rates to reduce inflation

On April 4, Powell also suggested that the Fed was not in a hurry to reduce its reference loan rate of its current high level. Establishing key interest rates is one of the main levers The Fed exercises in its double mandate or management of inflation and inempleant.

The reduction of interest rates serves to make cheaper loans and tend to start the economy encouraging the investment, while raising them, or keeping them stable at higher rates, it can help cool inflation. The inflation of US consumers.

Financial markets see a possibility of approximately two thirds that politicians vote to keep fees without changes again in the next meeting of Fed interest rates in May, according to the CME Group data.