Before the Powell hearing, Trump once again called for interest rate cuts: they should be reduced by at least two to three percentage points!
Trump pressured, stating that there is no inflation and the economy is thriving—America should lower rates by at least 2 to 3 percentage points. This would save the U.S. $800 billion annually. If the situation worsens in the future, then raise interest rates. I hope Congress gives this stubborn fool a good lesson
On the eve of Powell's hearing, Trump once again pressured Powell, calling for the Federal Reserve to significantly cut interest rates!
On Tuesday, Trump posted on his social media platform "Truth Social":
"Too late, Mr. Chairman" Jerome Powell will explain to Congress today why he refuses to lower interest rates. Europe has cut rates 10 times, while we have done so zero times.
There is no inflation, the economy is booming—we should at least lower by 2 to 3 percentage points. This would save the U.S. $800 billion each year. If the situation worsens later, then raise rates.
I hope Congress gives this stubborn fool a good lesson. We will pay for his incompetence for many years to come. The committee needs to act! Make America great again!
As mentioned in a previous article, on Tuesday and Wednesday, Federal Reserve Chairman Powell will head to Capitol Hill to face questioning from lawmakers. He will defend a key decision: why the Federal Reserve has chosen to remain inactive and pause interest rate cuts amid trade friction clouds and economic slowdown concerns? A debate over the direction of monetary policy is about to unfold in Congress.
It is worth mentioning that divisions within the Federal Reserve are also widening. Following Federal Reserve Governor Waller's support for a rate cut in July, another governor, Bowman, pointed out last night that if inflationary pressures remain controlled, she would support a rate cut as early as July.
"Federal Reserve correspondent" Timiraos noted that Bowman's previous focus on inflation concerns represents a significant shift in her latest statement.
Regarding Trump's pressure tactics, Nick Timiraos stated that Trump has escalated his attacks on the Federal Reserve, putting it in a lose-lose situation as it navigates the risks of rising prices due to tariffs and slowing economic growth. Trump's sharp attacks reflect a lack of compelling arguments regarding the economic risks faced, leaving him with few good options to achieve the monetary policy he desires. The absence of suitable means to force Powell out explains why Trump may continue to apply pressure.
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