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Your guide on what the US elections of 2024 mean for Washington and Le Monde
Donald Trump was unleashed in Jay Powell on Thursday, saying that the end of the mandate of the president of the federal reserve “cannot come quickly enough” because he accused him of not having to lower interest rates fairly quickly.
The American president said in an article on his Truth social platform that Powell was “always too late and bad”. He added that the Fed chief “should have reduced interest rates, such as the [European Central Bank]A long time ago, but he should certainly be lowering them now. Powell’s termination cannot come quickly enough! »»
It was not clear if Trump referred to the planned end of Powell’s mandate as president, which is scheduled for May 2026, or with an intention to withdraw from his role earlier.
The ECB is expected to reduce rates on Thursday, with regard to the concerns that Trump’s trade war will achieve growth. The American president convulted the world markets when he announced “reciprocal” rates raised on dozens of American business partners, before implementing a 90 -day break.
Until now, the Fed has kept the pending rates this year after having lowered them three times in a row in 2024, including a large movement of half a point in September. The next meeting of the American central bank is in May.
In a speech on Wednesday, the president of the Fed, which was appointed by Trump in 2018, warned that the radical prices of the American president would lead to slower economic growth and higher inflation.
Powell said Trump’s samples had been “much more important than expected” and could put prices in a “difficult scenario” in which their price stability objectives and maximum use are in tension.
Trump was a frequent Powell critic, the exhoring to reduce borrowing costs. Earlier this month, the American president wrote on Truth Social: “Cut interest rates, Jérôme and stop doing politics!”
But in December, Trump told NBC News that he would not try to pass Powell from his position before the end of his mandate. “No, I don’t think so. I don’t see it,” said Trump.
In his speech on Wednesday at the Chicago Economic Club, Powell said: “Our independence is a matter of law.” He added: “We are never going to be influenced by political pressure. People can say what they want … But we will do what we do strictly without taking into account political or other factors.”
The global markets remained stable following the last extent of Trump, the S&P 500 to open 0.4%, according to the term contracts. The yield on the US Treasury at 10 years old increased by 0.03 percentage points to 4.31%.
“Powell knows that Trump will always hate him everything he will do, and there is no need to try to please him,” said Mark Dowding, director of investment for fixed income at RBC BlueBay Asset Management.
