WASHINGTON (Reuters)-US Federal Reserve Chair Jerome Powell is an “idiot” who kept the interest rates very high, but he will come out in eight months, President Donald Trump said at a press conference on Tuesday.
“I think he did a bad job, but anyway, he will leave very soon. In eight months, he will be out,” he said at a White House meeting with the Philippine President, Ferdinand Marcos Jr.
Powell’s mandate as president of the Fed runs until May 15, and he has repeatedly said that he will not leave office earlier. Eight months go until mid -March, and it was not immediately clear because Trump chose this period.
For months, Trump has been criticizing Powell for not reducing interest rates and often raised the possibility of firing him, but also said that firing him would be “unlikely.”
On Tuesday, Trump repeated his opinion that the interest rate should be 3 percentage points lower than it is.
The Central Bank’s Federal Open Market Committee meets next week and is generally expecting interest rates at its current range of 4.25% to 4.50%, as policy formulators expect to see how inflation and employment react to tariffs.
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“Our economy is very strong now, surpassing everything. We are beating records,” said Trump. “But do you know what’s going on? People are not able to buy a house because this guy is an idiot. He keeps the rates very high and is probably doing it for political reasons.”
Treasury Secretary Scott Bessent at the same meeting focused on the Fed’s attention for his non -monetary operations, again asking for a major internal investigation. Recently, the White House authorities raised questions about a $ 2.5 billion renovation from two Fed buildings in Washington, which, according to them, are inadequately luxurious.
“The Fed has suffered a great improper expansion of its mission, and that’s where much of the spending is going,” said Bessent. “That’s why they are building or renovating these buildings, and I think they need to stay within their function.”
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The Fed argues that buildings had serious security and efficiency deficiencies that needed to be resolved.
