Washington. The president of the United States, Donald Trump, renewed his criticism against the head of the Federal Reserve (Fed), Jerome Powell, calling him “fool” and complaining because the central bank refuses to lower interest rates.
Trump has been criticizing Powell for several weeks, threatening to say goodbye and then reversing his threats. He has repeatedly lashed out against him in publications on social networks, calling him “great loser.”
In statements made one day after the Fed maintained its key loan rate without changes, as the markets expected, Trump said that cutting the rates would be “as fuel for airplanes” for the economy, “but he does not want to do it.” He also said Powell “does not love me.”
last week, in comments that they suggested that he knows more than rates than the president of the Fed, Trump said he is not “a great fan” of Powell.
The FED maintained long -term indebtedness costs on Wednesday in the range of 4.25 and 4.5 percent, where they have been since December.
Although it is likely that the great tariffs imposed by Trump increase both inflation and unemployment, the economy has so far shown few signs of either, Powell said Wednesday.
As added, this reality gives the Fed time to wait until there is more clarity about where the encumbrances really end and evaluate its effect on prices and employment. At that time, the entity can act as necessary, and potentially aggressively, he said.
“There is no inflation, ”says Trump
-However, Trump had a different opinion. “Too late, Jerome Powell is a fool who has no idea,” he wrote on his social truth network on Thursday morning. “Petroleum and energy very down, almost all costs (edible and ‘eggs’) below, there is practically no inflation …”.
Cutting rates usually boost the economy, but at a time of inflation above the objective, it could also unleash an ascending spiral of pressures on the prices that Powell has said that it should be avoided.
Trump appointed Powell as president of the Fed in 2018, in his first mandate in the White House, and Democrat Joe Biden confirmed for a second four -year term in 2022.
Trump has not hidden his discontent with the management of Powell’s monetary policy since shortly after appointing him. Trump’s insinuation last month that he would like Powell to drop the actions such as bonds, for fear of investors that the entity could lose their independence and, therefore, its ability to contain inflation.
Asked about Trump’s criticism at his press conference on Wednesday, Powell declined to comment. He has said he intends to complete his mandate as president, which ends in approximately one year.
Powell met a total of three times with Biden. He also had a 90 -minute dinner with Trump at the White House during his first stage there, as well as several other shorter meetings, but has not spoken with him since 2019.
Powell said Wednesday that he has never sought or seek a meeting with a president. “It has always been the other way around,” he said Wednesday.
Talking with Powell is “how to talk to a wall,” Trump said Thursday.
