US President Donald Trump has strongly criticized Federal Reserve Chair Jerome Powell for not cutting interest rates sooner. Trump called Powell an “American disgrace” and said his delay is costing the country billions of dollars. The Fed’s recent decision to keep rates steady has sparked this sharp reaction from Trump, who believes the US should lower rates immediately.
Speaking on his social platform Truth Social, Trump expressed frustration with Powell and the Fed Board for their handling of the situation. “He is truly one of the dumbest and most destructive people in Government, and the Fed Board is complicit,” Trump said.
He added that Europe’s central bank has cut rates ten times while the US has not cut once. Trump insists the interest rates should be 2.5 points lower to help save billions on the nation’s short-term debt.
On the other hand, Powell explained the Fed’s decision during a press conference after the FOMC meeting. He pointed out that inflation is still a concern because it has not reached the recommended 2% target. Powell blamed some of the inflation risks on tariffs introduced by the Trump administration.
He also mentioned that the labor market is strong and not causing inflation problems right now. Because of these factors, the Fed is taking a careful, wait-and-see approach before changing interest rates.
Furthermore, he added that the full effects were still unclear and may not be visible for several months. “Because the economy is still solid, we can take the time to actually see what’s going to happen,” he said.
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