President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell, accusing him of keeping interest rates artificially high for political reasons. In a recent interview, Trump suggested that Powell, whom he appointed in 2018, was intentionally slowing the economy to harm Trump’s 2024 reelection prospects.
"Rates should have been cut months ago, but Powell wants to help the other side," Trump said, without providing evidence. The Fed has held rates steady at 5.25%-5.5% since July 2023, citing persistent inflation concerns despite recent cooling in price increases.
Economists largely dismiss Trump’s claims, noting the Fed’s longstanding independence from partisan influence. "The Fed’s decisions are data-driven, not politically motivated," said Mark Zandi of Moody’s Analytics. "Inflation remains above their 2% target, and premature cuts could backfire."
The White House declined to comment, while Powell has repeatedly stated the Fed’s commitment to neutrality. The controversy comes as Trump campaigns on promises to overhaul the Fed if reelected, including proposals to give the president more control over rate decisions—a move experts warn could destabilize markets.
Post a Comment