Trump intensifies feud with Fed's powell over rates decision
On Thursday, President Donald Trump once again verbally attacked Federal Reserve Chair Jerome Powell after the Fed decided to keep interest rates at their current level.
On Thursday, Donald Trump said that if the Fed lowered interest rates, it would be like "jet fuel," reports 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 a message on his social media platform Truth Social, stating that "'Too Late' Jerome Powell is a FOOL, who doesn’t have a clue."
This is not Trump's first verbal attack on Powell. In April, the president called the head of the US central bank a "major loser," saying that Powell is "always late and always wrong." He added that his termination "cannot come fast enough." However, he assured that he does not intend to dismiss him, adding that he does not have the legal tools to do so.
Rates in the US remain unchanged
To recap, the Federal Reserve decided on Wednesday to maintain the interest rates at their current level. Officials unanimously agreed to keep the federal funds rate target 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 sparked a wave of uncertainty throughout the economy. While tariff heights are still under negotiation, economists widely expect aggressive tariffs to increase inflation and impact economic growth.
