Washington (AFP) – US President Donald Trump branded Fed Chair Jerome Powell a “fool” on Thursday after the central bank announced another pause in rate cuts and warned of higher risks to inflation and unemployment goals.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump posted on his Truth Social network, in a fresh attack on the head of the independent Federal Reserve. Trump has repeatedly said he wants to see rates cut now to help stimulate economic growth as he rolls out his on-again, off-again tariff plans, which have included huge levies on China.
The Fed said Wednesday that policymakers had voted unanimously to hold the US central bank’s key lending rate at between 4.25 percent and 4.50 percent. Speaking to reporters after the decision was published, Powell said there was “a great deal of uncertainty” about where the Trump administration’s tariff policies will end up. Many analysts have warned that the government’s actions will likely push up inflation and unemployment, while slowing growth — at least in the short run.
But Trump claimed in his Truth Social post that there was “virtually NO INFLATION” and said “almost all costs” were down. During a news conference at the Oval Office a few hours later, Trump stepped up his attacks against the US Fed chair. “It’s like talking to a wall,” he said. “He’s always too late,” added the US president. “But in this case, it’s not going to matter that much, because our country is so strong.”
He has piled pressure on Powell in particular over rates decisions, last month calling him a “major loser” and insisting he could force out the head of the bank, before walking back his comments and saying he had no plans to do so. The Federal Reserve has a dual mandate to act independently to tackle inflation and unemployment, primarily by hiking, holding, or easing its benchmark lending rate.
An upbeat Powell told Wednesday’s news conference that criticism from Trump “doesn’t affect doing our job at all.” He added: “We are always going to consider only the economic data, the outlook, the balance of risks, and that’s it.”
© 2024 AFP
