Washington (AP) – President Donald Trump on Friday called the Board of Board of Governors of Federal Reserve to power Fed Chair Jerome PowellCriticizing the head of the US central bank for not cutting short -term interest rates.
Posting on his true social stage, Trump called Powell “stubborn”. The Fed Chair has been subjected to vicious oral attacks by the Republican President in several months.
Fed It is the responsibility of stabilizing prices and maximizing employment. Powell has organized its benchmark rate for continuous overnight loans this year, stating that Fed officials need to see what is the effect. Trump’s mass tariff Was on inflation.
If Powell “does not do a lot of less”, Trump posted, “The board should take control, and whatever he knows should be done!”
Two of the seven fed governors, Christopher Waller and Mitchell Boman issued statements on Friday, stating that they see tariffs on prices as one time impact and job market as the most likely. As a result, both of them dissatisfied Fed meeting On Wednesday and Trump’s demand was pushed to cut a slight rate relative.
Even though Trump, who nominated Waller and Boman, claimed that the American economy was booming, he welcomed his arguments and what he said to his strong dissatisfaction.
Friday Report of jobs Showed a rapidly disintegrated economy, as only 73,000 jobs were added in July and the amendment of June and May was brought down to 19,000 and 14,000 respectively.
Trump has seen the rate cuts as strong growth and low debt servicing costs for federal government and homebuild. The President argues that there is virtually no inflation, even though Fed’s favorite measure is running at an annual rate of 2.6%, which is slightly higher than the 2% target of the Fed.
Trump has called for lowering the fed benchmark rate by 3 percent points, bringing it down dramatically at a current average of 4.33%. The risk is that a rate cut that may cause more money in a large economy, it can be absorbed, possibly to accelerate inflation.
The Supreme Court in the May judgment suggested that Trump policy cannot remove Powell for disagreement. This motivated the White House to check whether the Fed chair could be removed due to the cost overran in the fed. $ 2.5 billion renewal projects,
Pavel’s term ends in May 2026, at the point at which Trump can put his Senate-confirmation pick in the seat.
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Josh Bok, Associated Press
