US President Donald Trump attacked US Federal Reserve Chairman Jerome Powell on Thursday for not lowering interest rates and said he could shoot him if he wanted to renew a threat from his first term that could raise a major legal confrontation on the issue of the old political independence of the Central Bank.
“If you want him to go out, he will come out of there real speed, believe me,” Trump said at the Oval Office during his visit with Italian Prime Minister Georgia Miloni. “I am not happy with it.”
Trump’s comments followed Published on his website on social media The Republican Powell called for a short -term interest rate in the federal reserve and said, “Powell end could not come quickly!”
Powell Kirri State ends in May 2026.
Powell Trump was initially nominated In 2017 he was appointed Another four -year period In 2021 by then President Joe Biden.
At a press conference in November, Powell indicated that he would not step down if Trump asked him to resign and notes on Wednesday, he explained that “our independence is a legal issue.”
He added: “We are not removable except for the reason. We are serving very long conditions, apparently endless terms.”
Inflation, definitions and Trump
Trump’s criticism stems from his point of view, as he said on Thursday, “We have no inflation.”
The Federal Reserve raised sharp rates in 2022 and 2023 to slow borrowing, spending and taming inflation, which steadily decreased from the peak of 9.1 percent in 2022 to 2.4 percent last month. Inflation is not far from the goal of the Federal Reserve by 2 percent. Federal reserve money until interest rates three times at the end of last year.
But since then, Powell and most federal policy makers have emphasized that they have kept suspended rates due to the uncertainty caused by the customs tariff of Trump, including a 10 percent tax on all imports and 145 per cent tax on imports From China.
On the observations on Wednesday in Chicago, Powell confirmed that the Federal Reserve was waiting for greater clarity before making any moves and said that the definitions would likely exacerbate inflation.
Powell steadfastly stressed that the Federal Reserve is independent of politics, a position that federal reserve chairs have stressed at least the seventies of the last century. At that time, the Federal Reserve was widely seen as getting worse for 15 years of high inflation by surrendering to demands by President Richard Nixon at that time to maintain low interest rates in the period before the 1972 elections.
Economic research suggested that the independent central bank is likely to maintain inflation in the test because it is more willing to do unimaginable things, such as interest rates raised, to fight the high prices.
Wall Street investors are also very preferred to get an independent backup bank, although the stock market does not seem to interact with Trump’s comments.
Powell says the federal reserve will not be affected. “
Powell said on Wednesday that the Federal Reserve will be based only on what is better for all Americans.
US President Donald Trump often claims that the customs tariff presented by the President in the late nineteenth century by President William McKinley in the American Golden Age, but history reveals a different story. Elie Glasner breaks CBC what Trump makes mistakes and lessons he can learn from the past.
“This is the only thing that we will do at all,” said Powell. “We will never be affected by any political pressure.”
He also suggested that the central bank focus on fighting inflation in the wake of definitions, which is likely that they will maintain high rates.
Trump complained that interest rates still rise “because we have the Federal Reserve Speaker who plays politics.” However, long -term interest rates rose after Trump announced his commercial penalties.
Trump and members of his economic team said they want to lower interest rates in the long run, making it cheaper for Americans borrowing to buy homes, cars and devices. However, the Federal Reserve controls a short -term rate and can indirectly affect the long -term borrowing costs.
A case before the US Supreme Court can make it easier for the president to shoot senior officials, such as the President of the Federal Reserve, in independent agencies. In the case of two Trump’s releases, which allowed judges to stand while considering the case.
Powell said he was closely watching the case, but it may not apply to the Federal Reserve, given that the court has carved exemptions in the Central Bank. The Trump administration’s lawyers, who seek to narrow the concentration of the case, have also argued that it does not involve the Federal Reserve.
In an interview with the 2024 campaign with Bloomberg News, Trump said he would allow Powell to provide his mandate as president. Earlier this month, Kevin Haysit said economic advisers in Trump, in a television interview: “There will be no political coercion on the federal reserve,” said Kevin Haysit, in a television interview.
Powell Trump’s second Powell began in a relatively safe place with a decrease in unemployment and the development of inflation near the goal of the Federal Reserve by 2 percent, the conditions that could save him from criticizing the president.
However, Trump’s tariff has increased the threat of recession with the high pressure of inflationary and slower growth, a difficult place for Powell, which is a mandate in price stability and increased employment.
With the weakness of the economy due to Trump’s moves, the president appears to be looking to blame Powell.
https://i.cbc.ca/1.7513586.1744924993!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_1180/u-s-president-donald-trump-pointing-a-finger-toward-reporters.jpg?im=Resize%3D620
Source link