Calling Powell a "foolish and stubborn person"
"Cutting interest rates could save over $800 billion a year"
On June 24 (local time), U.S. President Donald Trump once again urged a cut in the benchmark interest rate, referring to Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), as a "foolish and stubborn person."
At around 1:30 a.m. that day, President Trump posted on his own social networking service, Truth Social, saying, "It's too late," and added, "Chairman Powell is scheduled to appear before Congress today to explain various things, including his reasons for refusing to cut rates."
He stated, "Europe has cut rates ten times, but we haven't done it even once. There is no inflation and the economy is strong, so we should lower rates by at least 2 to 3 percentage points. The United States could save more than $800 billion annually."
President Trump also said, "If the situation turns negative later, we can raise rates then. I hope Congress deals with this foolish and stubborn person properly. We will pay the price for his incompetence for years to come."
Just four days earlier, he had also posted harsh criticism of Chairman Powell on Truth Social, calling him a "moron." He further questioned why the Fed Board does not simply ignore him, adding, "Maybe I will have to change my mind about firing him."
President Trump has long pressured Chairman Powell, consistently calling for a cut in the benchmark interest rate. In April, he remarked that he could dismiss Powell early, but after this comment sent shockwaves through the financial markets, he withdrew the statement and has not mentioned firing Powell since.
Since President Trump’s re-inauguration, the Fed has kept the benchmark interest rate steady at 4.25 to 4.50% in all four Federal Open Market Committee (FOMC) meetings, including the meeting held on June 18.
Chairman Powell’s term runs until May next year. According to a Bloomberg News report on June 10, citing sources, Scott Besant, Secretary of the Treasury, who has led trade negotiations under the Trump administration, is being strongly considered as his successor.
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