The U.S. President Donald Trump has recently expressed remorse for giving Jerome Powell the Chairmanship of the Federal Reserve. Donald Trump asserted that the appointment of Jerome Powell as the Fed Chair was not a right decision, while also demanding Federal Reserve rate decrease to 1-2%. The U.S. President addresses this in his recent post on his social media platform Truth Social.
Trump Says Powell’s Appointment as Fed Chair Was Mistake and Persuades Rate Cuts to 1-2%
In the post, Donald Trump regretted his act of taking advice to appoint Jerome Powell as the Fed Chair for the massive interest payments of the country. Trump also claimed that Powell’s hesitancy to cut the rates is costing the United States nearly $1T yearly. He added that the respective costs would have been saved by Powell by immediate rate decreases to 1-2%.
In addition to this, Trump also stressed that he attempted diverse tactics to change Powell’s viewpoint but just aggression resulted in any impact. Trump also mentioned that Powell hates him and that his decision to appoint him was a significant mistake. Irrespective of acknowledging a decline in the inflation concerns, Trump persuaded Fed to act rapidly to decrease rates.
U.S. Stands at Peak Among Central Bank Rates While Accounting for 4.50%
Apart from that, Trump also expressed his probable decision to fire Powell before the end of his term. Nevertheless, he also pointed out that Powell’s term is going to expire shortly. He also shared the custom-made image presenting the comparison of central bank rates across the world, with U.S. standing at the peak with 4.50% rates. Currently, as the Israel-Iran conflict is raising concerns worldwide, yes, the increasing rates can further worsen the economic conditions. Moreover, any breach above the existing levels could heighten uncertainty to another extent.
At the moment, the Fed has a plan to keep rates within the 4.25%-4.5% range. However, at the same time, lawmakers are split when it comes to the next move. Some think inflation to be considerably high while the others intend to decrease rates shortly. Hence, those anticipating cuts believe that the action moment could take place after the meetings of September as well as December this year.
