Trump continues his verbal assaults on the head of the Federal Reserve, following another decision to keep interest rates unchanged.
The ongoing speculation about President Donald Trump attempting to pressure or fire Federal Reserve Chairman Jerome Powell continues to persist. This political tension between the two men centers on interest rate policy.
Trump has repeatedly called for the Fed to cut interest rates, criticizing the high rates for hurting the housing market and the broader economy. However, Powell and the Federal Reserve have resisted these demands, keeping rates steady at around 4.3%.
On Wednesday, the U.S. central bank, the Federal Reserve, held its key lending rate steady for a fifth straight meeting. The decision was made despite pressure from President Trump. The Fed cited a moderation in economic activity in the first half of the year and "solid" labor market conditions.
Inflation is somewhat heightened, according to the Fed. The repeated attacks by Trump have sparked speculation about potential attempts to fire or pressure Powell into resigning early. The effects of the tariffs implemented by President Trump on U.S. trade partners are contributing to uncertainty about the economic outlook and inflation. Jerome Powell, the Federal Reserve chairman, stated that the effects of these tariffs are still not fully clear.
During a press conference on Wednesday, Powell defended the independence of the central bank, stating that it has served the public well. His comments were a direct response to Trump's criticism. Trump has repeatedly attacked Powell, calling him "too late," "too angry," "too stupid," and "too political" to be Fed chair.
The Fed's decision was announced on Wednesday, and it gave no hint of a rate cut in September. The announcement was made on the Fed's Truth Social platform by President Trump. Trump's speculation about pressuring or firing Powell continues to persist, but Powell has remained firm and unmoved by this pressure.
[1] Source: Reuters
- The ongoing politically charged atmosphere, driven by President Trump's repeated calls for lower interest rates and his criticism of Federal Reserve Chairman Jerome Powell, has fueled speculation about potential attempts to fire or pressure Powell into resigning early.
- The Federal Reserve, under the leadership of Chairman Powell, has maintained a steady interest rate policy despite pressure from President Trump, citing moderation in economic activity, solid labor market conditions, and heightened inflation as key factors in their decision.
- Amidst war-and-conflicts over trade, general-news outlets have reported on the tension between President Trump and the Federal Reserve over interest rate policy, with crime-and-justice allegations of political interference in the Fed's independence surfacing due to Trump's repeated attacks against the Chairman.
