Recently, the North American Central Bank decided to keep the rates in the range of 4.25%-4.5%, compared to uncertainty about the evolution of inflation, within the framework of the commercial war.
The president of the USA, Donald Trump, again aimed against the Federal Reserve (FED), stating that the interest rate should be less than or equal to 1%. It happens in the midst of rumors about the displacement of the president of the agency, Jerome Powell, of his position.
The Republican president said that Powell and the members of the Board of Governors of the North American Central Bank have not done their job correctly. “If they were doing their job correctly, our country would be saving billions of interest costs“He said in a social truth post.” We should be paying an interest of 1%, or better! “
It is worth remembering that in its last monetary policy meeting, the Fed decided to keep the rates in the range of 4.25%-4.5%, because it considers that a potential inflationary risk is still persists as a consequence of the tariff war unleashed by Trump.
Previously, the monetary authority came from raising the fees in 2022 and 2023 to slow the economy and fight inflation, which reached a maximum of four decades almost three years ago, amid the conflict between Russia and Ukraine. Now that price increases are almost again close to the objective of the Fed, Trump has repeatedly attacked the entity, qualifying Powell as “fool” and “fool.”
But the official said in a testimony to Congress earlier this week that Fed wants to see how inflation and economy evolve before cutting the rates. Most other officials responsible for the agency’s policy have expressed a similar opinion.
Meanwhile, in the last days the rumors about a Powell replacement fed profits on Wall Street.
The Fed carefully monitors inflation and employment data in the US
Last week the US Department of Commerce reported that Prices increased 2.3% in May compared to the previous year, compared to 2.1% in April. Excluding volatile food and energy categories, underlying prices increased 2.7% year -on -year, against 2.6% of the previous month. Both figures are modestly Above the 2% target of the Federal Reserve, which is usually governed by the dynamics of underlying inflation.
In terms of employment, it was known that Initial applications of state unemployment subsidies fell In 10,000, up to an unstacilities of 236,000, in the week ended on June 21. Economists had planned 245,000 applications for the last week.
Nevertheless, The layoffs have rebounded And economists claim that the wide import tariffs of President Trump are making it difficult to plan companies. The high continuous applications of subsidies have made it expect that unemployment rate rises to 4.3% in June from 4.2% in May.
Source: Ambito
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