Trump lashes out at Fed's Powell over interest rate stance
On Thursday, President Donald Trump once again verbally attacked Federal Reserve Chairman Jerome Powell after the Fed decided to keep interest rates unchanged.
Donald Trump remarked that if the Fed lowered interest rates, it would be like "jet fuel," reported CNBC. "I think he doesn’t want to do it," he remarked about Fed Chair Jerome Powell. "Probably he’s not, he’s not in love with me. I think that’s, it’s sort of a crazy reason, but that’s the way life is," he stated in a conversation with journalists. He described urging the Fed to cut rates as "talking to a wall."
Earlier, he also posted on his social media platform, Truth Social, stating that "'Too Late' Jerome Powell is a FOOL, who doesn’t have a clue."
This isn’t Trump’s first verbal attack on Powell. In April, the president called the head of the US central bank "a major loser." He stated that Powell is "always late and always wrong." He added that his termination "cannot come fast enough." He later assured that he does not intend to dismiss him, noting he does not have the legal means to do so.
Rates in the US unchanged
Let's recall, the Federal Reserve decided on Wednesday to maintain interest rates at their current level. Officials unanimously agreed to keep the federal funds rate in the range of 4.25 to 4.5 percent.
"Uncertainty about the economic outlook has increased further," the Fed stated in a communiqué following the meeting. "The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen," it reads.
As Bloomberg notes, President Donald Trump's trade policy has triggered a wave of uncertainty across the economy. While tariff levels are still being negotiated, economists widely expect that aggressive tariffs will increase inflation and impact economic growth.
