The US president has warned that the economy may slow down if the Federal Bank does not immediately reduce interest rates, continuing its attacks on Federal Reserve President Jerome Powell.
Trump supported a post on social media on Monday that “there can be almost no inflation” due to the decline in prices in energy and food. “But there may be a slowdown in the economy, unless the too slow, very failed, reduce interest rates now,” Trump said, referring to Powell.
Although oil prices have fallen, consumer price index data for March show that average food prices are over 2% compared to the previous year and increased almost half a percentage point compared to the previous month.
Trump has caused a disruption to Wall Street with his repeated criticism of Powell and hints that he could remove him from his post before his term of office.
The president launched a new attack on Powell last week, after a reduction in European Central Bank’s basic interest rate by a quarter of the percentage point to 2.25%. Trump has repeatedly complained that the Federal Reserve does not reduce interest rates quickly.
Donald Trump constantly puts them with Powell
The president’s comments are made while central bankers and economic policy officials from around the world are due to meet in Washington this week as part of the Spring meetings of the International Monetary Fund and the World Bank.
“I’m not happy with him. I have made it clear to him. And, oh, if I want to drive him out, he will leave very quickly, believe me, “Trump told reporters during a meeting with Italian Prime Minister George Meloni.
Trump’s decision to impose extensive duties on imports has caused concerns that inflation can be increased, as consumers and businesses are beginning to feel the consequences of additional taxes.
In a speech last week at the Chicago Economic Club, Powell stressed that the Fed should ensure that duties would not lead to a more persistent increase in inflation and stressed that the central bank would “expect more clarity before consuming any adjustment of our political stance”.
He also added that Trump cannot remove him from his position, saying that “our independence is guaranteed by law” and that the statute of the Federal Reserve predicts that “there is no removal outside the cause”.
National Economic Council Director Kevin Hasset told reporters on Friday that the president is considering dismissing Powell.
