The US president, Donaldtrump again claimed a decrease in interest rates to the head of the Federal Reserve, Jerome Powellwhich appears on Tuesday before Congress.
Last week, the American Central Bank decided for the fourth consecutive meeting to maintain interest rates, causing the anger of the Republican president who usually collides with Powell for this issue.
“Jerome Powell ‘Too late’ of the Fed will be again before Congress today to explain, among other things, why he refuses to lower the rates,” Trump wrote in a message on his social truth network.
“Europe has had ten drops. We zero. Without inflation, a magnificent economy. We should be at least two or three points below,” said the US president.
In this way, he defended, the United States would save “more than US $ 800,000 million annually.”
Trump multiplied attacks against Powell in recent months. On Tuesday he called him as “beast” and “stubborn” in his message and said that the United States will pay “for its incompetence for a good number of years in the future.”
On Tuesday, Powell will present to the Congress Financial Services Committee to present the semi -monetary policy report of the Central Bank.
In its monetary policy meeting this month, the Fed held its main rates between 4.25% and 4.50%, the levels set in December 2024.
Powell justified this decision for the prognosis of more inflation and less growth this year and argued that they should wait to understand the effects on the economy of the tariff war launched by Trump.
From his return to the White House, the Republican imposed tariffs of 10% to almost all its commercial partners, in addition to sectoral rates to US imports of steel, aluminum and vehicles.
This complicates the work of the Fed. Normally those responsible for central banks usually raise interests to stop inflation, but cut them when growth slows down.
However, economists estimate that Trump’s tariff offensive can feed inflation and ballast growth at the same time.
Source: Ambito
