Trump Calls Fed Chair Powell ‘Numbskull’ But Says He Won’t Fire Him
Synopsis
Trump expressed exasperation at not being able to convince Powell to cut rates.
President Donald Trump renewed his attacks against Federal Reserve Chair Jerome Powell following the release of favorable inflation data, pressuring him to lower interest rates.
During a White House briefing on Thursday, after announcing an end to California’s EV mandate, President Trump touched upon his demands for a rate cut.
Trump expressed exasperation at not being able to convince Powell to cut rates. He said a 2-percentage-point reduction in rates would save the U.S. $600 billion a year.
“We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now,’” Trump said.
He said he would have been okay with the Federal Open Market Committee (FOMC) hiking interest rates if inflation was on an upward trajectory.
“But it’s down, and I may have to force something,” the President added.
It’s not clear yet what exactly Trump meant by it, though.
The President on Wednesday demanded the Fed cut rates by 100 basis points. “CPI JUST OUT. GREAT NUMBERS! FED SHOULD LOWER ONE FULL POINT,” he said in a post on Truth Social.
According to data from the Bureau of Labor Statistics (BLS), the consumer price index (CPI) rose 0.1% in May on a seasonally adjusted basis, following a similar rise in April. On an annual basis, CPI rose 2.4% before the seasonal adjustment.
Vice President JD Vance joined in, terming the Fed’s wait-and-watch stance “monetary malpractice.”
The President has previously slammed Powell, saying he is “too slow,” and a “major loser” for not cutting rates.
The Fed has kept interest rates steady in the 4.25% to 4.5% range, pointing to uncertainty caused by Trump’s tariffs.
Meanwhile, equity markets hovered in the green on Thursday.
The SPDR S&P 500 ETF (SPY), which mirrors the S&P 500 index, was up 0.22% at the time of writing.
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