Even with Trump pressure from an interest rate cut, the American BC, commanded by Jerome Powell, decided to keep the rates between 4.25% and 4.50%
The president of the United States, again attacked publicly the president of the Federal Reserve (Fed), on Friday (20), after the decision of the Central Bank to maintain unchanged for the fourth consecutive time. Posting on the Truth Social Network, Trump called Powell “complete and total idiot” and considered his resignation. “Maybe I have to change my mind about fireing him? Anyway, his term ends soon,” wrote the Republican. “I was kind, I was neutral and was unpleasant, and being kind and neutral did not work.”
Powell, nominated for Trump himself in 2018, has a mandate until 2026. The latest meeting ended last Wednesday (18) with the decision to keep interest between 4.25% and 4.50%, level defined since December 2024. At the time, Powell indicated caution and concern for the inflationary effects of import tariffs implemented by the Trump government.
The American agent presses for a reduction in fees to stimulate the economy. He argues that inflation is “under control” and defends an immediate cut from a percentage point. The Fed adopts a more conservative stance, signaling that any cuts – if they occur – would be gradual.
One of Powell’s possible successors is Christopher Waller, an ally of Trump and current member of the Fed Council. Waller defended on Friday an interest reduction at the next meeting, scheduled for the end of July.
*With information from AFP
Posted by Felipe Cerqueira
