President Trump attacks U.S Fed Chief
U.S President Donald Trump has once again attacked Jerome Powell, the chair of the Federal Reserve, for being too slow to lower interest rates
Quick overview
- President Trump criticized Federal Reserve Chair Jerome Powell for not lowering interest rates quickly enough, despite decreasing inflation.
- Senator Rick Scott echoed Trump's sentiments, calling for new leadership at the Federal Reserve.
- Trump's criticism challenges the tradition of protecting the Fed's political independence from executive influence.
- Current Fed Fund futures suggest a low chance of a rate cut in May, but expectations for a cut in June have increased significantly.
U.S President Donald Trump has once again attacked Jerome Powell, the chair of the Federal Reserve, for being too slow to lower interest rates and for intensifying a long-running dispute that could jeopardize the U.S. Federal Reserve’s political independence.
“Powell has not acted appropriately, Trump stated via Truth Social, even though inflation has decreased, after the European Central Bank (ECB) lowered interest rates once more.
Senator Rick Scott of Florida stated that “new leadership at the Federal Reserve is needed‘ in agreement with the president .” Trump’s outspoken criticism of the Fed violates a long-standing political tradition in the US that aimed to protect the central bank from political scrutiny, including any executive decision to change the chair.
Powell stated that Fed independence is “a matter of law” in a speech at the Economic Club of Chicago on April 16. Powell has previously indicated that he intends to complete the remaining months of his term, which ends in May 2026.
Fed Fund futures prices indicate a less than 10% chance of a rate cut at the Fed’s next meeting in May, which is expected to maintain its wait-and-see policy stance.
Nonetheless, the odds of a rate cut at the Fed’s June policy meeting have risen to over 65%. The Federal Reserve holds immense power over financial markets; its monetary policy decisions impact US dollar liquidity and shape investor sentiment.
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