President Trump again continued the federal reserve on Tuesday, saying during a rally in Michigan that “I have a nourished person who is not really doing a good job”.
It was an apparent reference to the president of the Fed, Jerome Powell, although he did not mention Powell by name with Trump saying “I want to be very nice and respectful towards the Fed”.
“You are not supposed to criticize the Fed; you are supposed to let it do his own thing, but I know much more than him of interest rates, believe me,” he added.
It was the last sign that the president does not intend to release the central bank or its president or put pressure for interest rates below per week after having said He has “no intention“to dismiss the boss of the central bank.
Trump himself fought speculation about Powell's fate after Trump said on social networks Earlier this month, “Powell's termination cannot come quickly enough”.
The assurance that he would not try to withdraw Powell helped calm investors fearing that Trump be ready to upset the leaders of the Fed and directly challenge his independence.
It was apparently a step that was considered. The White House economic advisor Kevin Hassett said Trump and his team actually studied if the Fed chair could be deleted.
Trump's attacks on Powell increased after Powell said in a speech earlier this month that the president's aggressive list would lead to higher inflation and lower growth and the Fed would likely hold stable rates for the moment.
Apparently recognizing that slower economic growth could be on the horizon, Trump, in a social media post on April 21, called for “preventive rate reductions” and called Powell as “major loser”.
“There may be a slowdown in the economy unless Mr. Too late, a large loser, decreases interest rates now.”
Many other Fed officials beyond Powell also urged patience and caution before making rate movements, taking into account the many upcoming uncertainties.
New readings on inflation and GDP must be released on Wednesday morning, which will be closely studied before the next Fed political meeting on May 6 to 7.
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