President Trump has renewed his criticisms of Federal Reserve Chair Jerome Powell, arguing that cutting interest rates would act as 'jet fuel' for the economy. Despite Trump's insistence on lowering rates, Powell chose to maintain the current rates of 4.25%-4.50%. Powell explained that the economy currently shows no signs of strong inflation or unemployment, warranting a cautious approach. However, Trump's discontent with Powell's monetary policy raises worries about the Fed's independence, influencing market reactions and presenting challenges to future economic stability.
President Trump criticized Federal Reserve Chair Jerome Powell again, insisting that lower interest rates would significantly boost the economy, but expressed frustration at Powell's reluctance.
During a news conference, Powell noted the economy has shown little sign of rising inflation or unemployment, and therefore the Fed will wait before making further moves.
Trump's dissatisfaction with Powellâs monetary policy has raised concerns among investors about the potential loss of the Fedâs independence, impacting markets negatively.
With interest rates maintained in the 4.25%-4.50% range since December, Powell emphasized that an impulsive rate cut could exacerbate inflationary pressures.
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