Donald Trump said that Jerome Powell’s “termination cannot come fast enough!” in response to the US central bank chief’s failure to lower interest rates.
Ahead of the European Central Bank’s (ECB) third interest rate decrease this year, the US president renewed his criticism of Powell on social media.
It declared that it has lowered the key rate “because of increasing trade tensions” on Thursday.
Trump stated that he “is always TOO LATE AND WRONG” on lowering borrowing prices. In 2017, during his first term, Trump chose Powell to be the chair of the Federal Reserve.
“Oil prices are down, groceries (including eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump went on. He should definitely decrease interest rates today, but Too Late should have done so long ago, just like the ECB.
According to government data, the price of eggs has increased to $6.23 per dozen, but oil costs have decreased since Trump announced his tax regime at the beginning of the month.Powell was criticized by Trump, but ECB President Christine Lagarde stood up for her American colleague.
According to Lagarde, “I have a lot of respect for my friend and esteemed colleague Jay Powell,” when discussing the decision to lower European interest rates from 2.5% to 2.25%.
“We have a solid, steady relationship amongst central bankers.”
Powell stated on Wednesday that Trump’s tariffs will hurt US economic growth and raise consumer prices, which prompted the president to strike out.
He claimed that the import tariffs exceeded the higher end of the bank’s projections and were more than anticipated.
Investors’ reactions to the tariffs and the growing trade war between the United States and China have caused chaos on international financial markets.
“The magnitude of the tariff increases announced thus far is substantially greater than expected,” Mr. Powell stated.
“The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
Although analysts have cautioned that tariffs run the risk of escalating inflation, the US president has stated that they will increase US manufacturing and jobs. Trump promised to lower inflation during his campaign.Trump has already attacked Powell, the person he selected to succeed Janet Yellen, whom he accused of maintaining excessively low interest rates.In order to help debtors, the president called for lower interest rates during his campaign.
By imposing a 10% tariff on goods coming into the US from the great majority of nations, Trump has fueled a trade war since taking office again.
By imposing a 145% tax on Chinese goods—with minor exceptions for smartphones—he has further escalated tariffs with China. China retaliated by imposing 125% tariffs on US goods. The White House stated on Wednesday that the levies on certain Chinese items may reach 245% when the new tariffs are combined with the current ones.
