Can trump sack Powell? He is upset with the decision...?
The european Central bank (ECB) on Thursday cut interest rates for the seventh time this year. It has also indicated that interest rates will be reduced further. While a day before this, US Federal Reserve Chairman Jerome Powell indicated that he is not in a hurry to cut interest rates at the moment. He says that he will not rush to take a decision on monetary policy. His focus is currently on the impact of Trump's tariff policy on the US economy.
Donald Trump furious at Powell
Now it is obvious that trump is unhappy with Powell's decision. In one of his posts on thursday, he compared the Fed Reserve to the ECB and criticized Powell, calling him "always late and wrong". trump says that Powell should have already reduced interest rates like the european Central Bank. Let us tell you that the Federal Reserve has maintained the policy interest rate in the range of 4.25 percent-4.50 percent since december, while the interest rates were cut thrice from september to december 2024.
Trump put pressure to reduce interest rates
Trump argued in his post, "The prices of oil and groceries (even eggs) have come down. America is getting richer through tariffs. Like the ECB, interest rates should have been reduced long ago, but now it must definitely be reduced."
While the policy makers of the Fed Reserve are facing many challenges these days. At an event organized at the Economic Club of Chicago on Wednesday, Powell said, inflation may increase due to tariffs. In such a situation, it will be difficult for the Fed to deal with weak economic growth. Earlier, Jerome Powell had said that if inflation does not come down, interest rates may remain high.
President Trump on Thursday attacked Federal Reserve Chairman Jerome Powell and posted on social media, "Dismissal can't happen soon enough." In 2017, trump appointed Jerome Powell as the Fed's chairman. His term will end in May 2026. However, this is not the first time trump has threatened Powell, in fact, even before this, in 2018, he had clashed with Powell over interest rate policy, but did not dismiss him.
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