President Donald Trump and the president of the American federal reserve Jerome Powell.
Win McNamee | Annabelle Gordon | Reuters
On Friday, President Donald Trump launched his latest criticisms to the president of the Federal Reserve Jerome Powell, while the dissatisfaction of the White House for the head of economic policy strikes a fever field.
During a session of questions and answers on Friday afternoon with journalists, Trump underlined examples of lowered prices.
“If we had a president of the Fed who understood what he was doing, interest rates would also drop,” said Trump. “He should make them fall.”
Trump has long argued that the Fed, which establishes a monetary policy in the United States, should reduce interest rates. His latest comments arise as the White House has accelerated its attacks on Powell in recent days.
The White House economic advisor Kevin Hassett said on Friday that Trump and his team assess if they can remove the Fed chair. Powell previously said that he could not be dismissed under the law and intended to serve until the end of his mandate in May 2026.
“The president and his team will continue to study this case,” Hassett said in the White House after a journalist wondered if the dismissal Powell “is an option in a way that was not before,” said Reuters.
Trump posted on Truth Social Thursday that “Powell’s dismissal cannot come quickly enough”. His article included the nickname “Too Late” for Powell, a continuation of Trump’s habit to give satirical titles to political rivals.
Its use of the word “termination” raised questions about if Trump referred to the potential deletion of Powell from his post before the scheduled date. Hassett said on Friday that the administration would examine if there is a “new legal analysis” which would allow the dismissal of Powell.
Powell appeared to Irk Trump after declaring on Wednesday that the president’s disputed tariff plan could increase short -term inflation and create challenges for the central bank in the management of high employment and price stability targets. Powell said Trump’s samples – many of which are on a break – are “likely to get us more away from our goals”.
“We can find ourselves in the difficult scenario in which our double -compressed objectives are in tension,” Powell said in remarks prepared in front of the Chicago Economic Club. “If that were to happen, we would consider how far the economy is from each objective, and the potentially different time horizons on which these respective shortcomings should fill.”
Powell also said that the Fed was “well placed to wait for greater clarity before considering any adjustment to our political position”.
The Federal Market Committee opened at its loan rate currently targeted in a range between 4.25% and 4.5%, where it has been seated since December. According to the central bank, the Fed -term contracts are prices of more than 90% CME’s Fedwatch tool.
While Trump’s team intensified criticism, some Democrats have defined themselves. Senator Elizabeth Warren, D-MASS., Warned Thursday that the president dismissing the head of the Fed would be disastrous for the American financial markets.
“Understand this: if President Powell can be dismissed by the President of the United States, he will crash markets in the United States,” Warren said on CNBC.
