The president of the United States, Donald Trump, has intensified his criticisms of the president of the Federal Reserve, Jerome Powell, urging it to reduce interest rates to avoid economic slowdown.
In a message on social networks, Trump said that the downward trend of energy and food prices indicates that Inflation is not a concern, But Powell’s lack of action could lead to an economic slowdown.
Downward trend of energy and food prices
According to Trump, Energy costs are at very low levels and food prices are also decreasingwhich suggests that inflation is not an imminent risk. The president highlighted the favorable evolution of these costs and pointed out that Europe has reduced interest rates seven times, while Powell has been slow to respond to the current situation.
Previous criticism from Trump to Powell
During the last week, Trump has increased his criticisms of Powell, even publicly asking for his dismissal as president of Fed. In statements in social networks, Trump has questioned Powell’s effectiveness and has suggested that his inaction could have negative consequences for the economy.
Powell’s possible dismissal
The White House has recognized that He is considering the dismissal of Jerome Powell as president of the Federal Reserve. The Economic Advisor of the White House, Kevin Hasett, mentioned that the president and his team are evaluating this possibility, without offering more details about it.
Powell’s mandate in the Federal Reserve
Jerome Powell was appointed as president of the United States Central Bank until May 2026, with a mandate as governor that extends until February 2028. Trump’s pressure on Powell to reduce interest rates has generated uncertainty about the future of monetary policy in the country.
The relationship between the president and the central banker is still tense, and the decision about Powell’s future could have significant implications in the US economy.