President Trump announced he would let Jerome Powell complete his term as Federal Reserve chair, suggesting that Powell will exit soon anyway. Despite previously hinting at firing Powell, Trump acknowledged that he is not currently planning to do so. Criticism directed at Powell centers on his cautious approach to interest rate cuts. Trump claimed Powell has often been 'too late' in making necessary cuts. The Federal Reserve faces inflation concerns, influencing its decisions on interest rates, especially after significant cuts last year. Powell remains committed to his term until May.
President Trump stated he would allow Jerome Powell to complete his term as Federal Reserve chair, remarking, 'he's going to be out pretty soon anyway.' This comment follows Trump's recent critiques of Powell for not aggressively cutting interest rates.
Trump criticized Powell for being 'too late' on interest rate cuts, asserting that he should have lowered rates 'many times.' Despite Trump’s ongoing attacks, Powell plans to serve until May next year.
The Federal Reserve's decisions to keep interest rates steady this year stem from concerns that tariffs introduced by Trump could lead to higher inflation, contrasting with a full percentage point cut between September and December last year.
With inflation worries increasing, the Federal Reserve is unlikely to reduce interest rates at its upcoming policy meeting. Consumer prices rose 2.7% in June compared to the previous year.
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