Key dealers
- President Trump stated that he will not fire chairman Jerome Powell despite previous comments.
- Trump criticized Powell for being slow for lowering interest rates but supports future increases if inflation is rising.
Trump said Thursday that if inflation will take up next year, he would support the Fed’s decision to raise interest rates. Still, the US President fleeed that the Fed Chairman Jerome Powell would still be slow to act, just as he thinks Powell is currently drawing his feet on interest rate cuts.
“Let’s say there was inflation. In a year from now, raise your prices. I don’t mind, raising your prices. I’m all for it. reported by Bloomberg. “He will be too late for that too.”
Trump made it clear that he had no plans to remove the FED chair and softened his comments from last week that he would soon nominate someone new to lead the central bank.
His comments have revived succession spray at Fed, with Treasury Secretary Scott Bessent shows up Earlier this week as a name of interest among Trump advisors.
Bessent has not confirmed or denied any intention to continue the role, while the White House has dismissed the report.
Trump also criticized Powell’s attitude to monetary policy in the midst of facilitating inflation and said that the Fed has been too slow to lower interest rates. He expressed frustration on how current prices affect government loan costs.
Despite Trump’s continued pressure, Fed is generally expected Keep interest rates on vent At the upcoming FOMC meeting, CME Fedwatch data has specified.
The CPI report for May, published on Wednesday, showed a marginally softer read than expected. However, inflation cruised from year to year up to 2.4% from 2.3% in April, which still exceeded the central bank’s 2% target.
