U.S. President Donald Trump has urged Federal Reserve (Fed) Chair Jerome Powell to make a significant interest rate cut, arguing that Powell is damaging the housing market.
On the 19th (local time), President Trump wrote on his social media platform, Truth Social, "Someone please tell 'Too Late' Jerome Powell that he is severely ruining the housing market," adding, "Because of him, people are unable to get mortgages."
He went on to say, "There is no inflation, and all indicators point to a significant rate cut," insisting that "'being too late' (referring to Powell) would be a disaster."
Last September, the Fed implemented a "big cut," lowering the benchmark interest rate by 0.5 percentage points just over a month before the presidential election. After President Trump was elected in early November last year, the Fed cut rates by 0.25 percentage points for two consecutive months, but since December last year, the rate has been held steady at 4.25-4.50%.
In response, President Trump has publicly expressed his dissatisfaction, claiming that Chair Powell is reluctant to lower interest rates. U.S. Treasury Secretary Scott Besant has also repeatedly stated in media interviews that the rate should be cut by 0.5 percentage points in September.
Chair Powell is scheduled to deliver a speech at the Jackson Hole meeting on the 22nd. The market is watching closely to see if he will comment on the future economic outlook and the direction of monetary policy. The Federal Open Market Committee (FOMC) meeting in September is scheduled for the 16th and 17th. According to CME FedWatch, there is an 84.9% probability that the Fed will cut the current benchmark interest rate of 4.25-4.5% by 0.25 percentage points in September.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
