US President Donald Trump has targeted US Fed Chairman Jerome Powell , calling him ‘incompetent’. Trump has in the past hit out at Powell for not cutting rates, calling him a ‘numbskull’ and Mr ‘Too Late’.
During the Federal Reserve 's meeting last week, seven out of 19 officials involved in the bank's interest-rate decisions favoured maintaining current rates throughout this year, whilst two officials suggested a single reduction.
Despite economists' widespread concerns that Trump's tariffs would drive up costs, inflation has consistently decreased this year. According to government data released last week, the consumer price index showed a minimal rise of 0.1% between April and May, indicating subdued price pressures. Although certain goods experienced price increases last month, reduced costs in service sectors like aviation and accommodation counterbalanced any effects from tariffs.
In his latest salvo against Powell, Donald Trump posted on social media platform Truth Social, ““Too Late” Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO. No inflation, great economy - We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!”
Also Read | US Fed meeting: Jerome Powell-led US Federal Reserve keeps rates unchanged; defies Donald Trump’s call for cut
Last week Trump said, "I don't know why the Board doesn't override (Powell)," Trump expressed in a detailed statement on Truth Social whilst questioning Fed policy. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly."
Federal Reserve governor Michelle Bowman indicated on Monday that the central bank ought to evaluate reducing its primary interest rate at their upcoming July meeting, highlighting significant disagreements amongst Fed officials amidst intense scrutiny from the White House.
Bowman noted that contrary to many economists' predictions, President Donald Trump's tariffs have not triggered the anticipated inflation surge, suggesting that any future price increases would likely be temporary.
"It is likely that the impact of tariffs on inflation may take longer, be more delayed, and have a smaller effect than initially expected," Bowman said in a speech Monday in Prague. "Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting," which is scheduled for July 29-30.
Bowman, who joined the Fed's board of governors in 2018 following Donald Trump's nomination, becomes the second prominent official to advocate for a potential July reduction in consecutive days.
Christopher Waller, another Trump appointee to the Fed's board, expressed during a television interview on Friday that the Fed should contemplate decreasing borrowing costs in the following month.
Also Read | ‘Everything on the table…’: India eyes duty cuts on both sides; seeks assurance Donald Trump-led US won’t impose additional tariffs after trade deal
During the Federal Reserve 's meeting last week, seven out of 19 officials involved in the bank's interest-rate decisions favoured maintaining current rates throughout this year, whilst two officials suggested a single reduction.
Despite economists' widespread concerns that Trump's tariffs would drive up costs, inflation has consistently decreased this year. According to government data released last week, the consumer price index showed a minimal rise of 0.1% between April and May, indicating subdued price pressures. Although certain goods experienced price increases last month, reduced costs in service sectors like aviation and accommodation counterbalanced any effects from tariffs.
In his latest salvo against Powell, Donald Trump posted on social media platform Truth Social, ““Too Late” Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO. No inflation, great economy - We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!”
Also Read | US Fed meeting: Jerome Powell-led US Federal Reserve keeps rates unchanged; defies Donald Trump’s call for cut
Last week Trump said, "I don't know why the Board doesn't override (Powell)," Trump expressed in a detailed statement on Truth Social whilst questioning Fed policy. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly."
Federal Reserve governor Michelle Bowman indicated on Monday that the central bank ought to evaluate reducing its primary interest rate at their upcoming July meeting, highlighting significant disagreements amongst Fed officials amidst intense scrutiny from the White House.
Bowman noted that contrary to many economists' predictions, President Donald Trump's tariffs have not triggered the anticipated inflation surge, suggesting that any future price increases would likely be temporary.
"It is likely that the impact of tariffs on inflation may take longer, be more delayed, and have a smaller effect than initially expected," Bowman said in a speech Monday in Prague. "Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting," which is scheduled for July 29-30.
Bowman, who joined the Fed's board of governors in 2018 following Donald Trump's nomination, becomes the second prominent official to advocate for a potential July reduction in consecutive days.
Christopher Waller, another Trump appointee to the Fed's board, expressed during a television interview on Friday that the Fed should contemplate decreasing borrowing costs in the following month.
Also Read | ‘Everything on the table…’: India eyes duty cuts on both sides; seeks assurance Donald Trump-led US won’t impose additional tariffs after trade deal
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