President Trump has vocally criticized Federal Reserve Chairman Jerome Powell for maintaining higher interest rates, suggesting that Congress should challenge Powell's decisions in upcoming testimonies. Trump argues that other central banks are easing policies while the U.S. remains stagnant, presenting a case that lower rates would significantly benefit the U.S. economy, potentially saving $800 billion annually. However, Powell has defended his position, emphasizing the need for caution to protect maximum employment and stable inflation, albeit facing dissent from some economists regarding his cautious approach.
Trump expressed his frustration with Powell, stating, "I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come."
Trump criticized the Fed's inaction, pointing out that "Europe has had 10 cuts, we have had ZERO. No inflation, great economy - We should be at least two to three points lower."
Powell and the FOMC maintain that they need more data before cutting rates to not jeopardize maximum employment and stable inflation.
Despite Trump's pressure on Congress to question Powell, the Fed chairman insists that his decisions are based on economic data, distancing himself from political influences.
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