Trump Demands Immediate Action from the Federal Reserve: Calls for Jerome Powell's Firing
In a pointed message shared on his Truth Social platform, US President Donald Trump has called for the firing of Jerome Powell, the head of the Federal Reserve, labeling his recent reports as a "complete disaster." Trump criticized Powell for not lowering interest rates in a timely manner, suggesting that the rate cuts should have been executed much earlier, similar to actions taken by the European Central Bank (ECB).
Trump's fierce remarks come as the ECB is anticipated to implement rate cuts for the seventh time, while he claims that Powell has repeatedly responded to economic challenges "TOO LATE AND WRONG." The President is advocating for immediate interest rate reductions, stating that they are needed now more than ever.
Highlighting his stance, Trump mentioned that oil prices have decreased, and the cost of food—including a notable drop in egg prices—has fallen, which he attributes to the ongoing economic strategies involving tariffs. Trump's fierce confidence in American economic resilience is evident as he asserts that these measures have made the US richer.
Jerome Powell, however, has expressed the necessity of demonstrating a consistent slowdown in US inflation before making further cuts to interest rates, which currently range between 4.25% and 4.5%. This is especially significant given the inflation rate which stood at 2.4% in March, surpassing the Fed's target of 2%.
In his latest comments, Powell indicated that while growth was solid for 2024, the first quarter data has shown a slowdown in the growth trajectory, a situation Trump himself has influenced through his ongoing trade war policies.
As the ECB prepares to lower rates from 2.5% to 2.25%, it poses questions about the differing approaches to monetary policy between the European and American central banks—highlighting the complex interplay between domestic and international economic strategies that will unfold in the coming days. Trump’s sharp critique of Powell may signal a deeper rift and set the stage for possible changes in the Federal Reserve as the pressure mounts for more aggressive actions in the face of economic fluctuations.
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