US President Donald Trump Renewed Attacks on Federal Reserve
US President Donald Trump has renewed his criticism of the Federal Reserve, the country’s central bank, in a social media post hours after the Fed announced it was keeping interest rates unchanged. Trump accused the Fed, led by Chairman Jerome Powell, of mishandling the economy and failing to stop the problem of inflation. The Fed left interest rates steady at 4.25-4.5% on Wednesday, despite Trump’s public calls for rate cuts.
The criticism comes as the Fed has expressed concerns about the potential impact of Trump’s policies on the economy, including the proposed tariffs and mass deportations of illegal immigrants. Some economists have warned that these policies could put upward pressure on prices. Powell has stated that the bank is not in a hurry to cut rates again, citing uncertainty about the economy’s direction.
Trump’s appointment of Howard Lutnick, a Commerce Department nominee, defended the proposed tariffs and dismissed concerns about their impact on prices. However, Powell expressed uncertainty about how the policies would play out, saying that the Fed was waiting to see what would happen.
The dispute has raised concerns about the potential impact on the Fed’s independence, which is meant to insulate it from political interference and focus on long-term economic stability. Powell stated that he has had no contact with Trump and that the Fed is focused on data in setting rates.
However, questions were raised about how the Fed is handling a new order from the White House to cancel diversity programs and withdraw from a global group of central banks focused on the risks of climate change to the financial system. Powell defended the Fed’s review of the order and said that the group’s focus had expanded into areas distant from the Fed’s responsibilities.
The feud has sparked concerns about the future of the Fed and its ability to maintain its independence in the face of political pressure.