The White House on Tuesday defended President Trump’s ongoing attack on Federal Reserve Chairman Jerome Powell, promoting recent investors’ concerns.
Trump on Monday called Powell a “major loser,” suggesting that the Fed’s previous interest rate cuts were aimed at supporting former President Biden. After Trump’s comments, stock market diving accelerated, with Dow Jones Industrial Arage falling 990 points (2.53%) at the time.
“I think the president has made his position at the Fed and Powell very clear. He believes that while they are suitable for the American economy, they are moving and taking action in the name of politics,” White House press chief Karoline Leavitt told reporters Tuesday.
“The president has the right to express his dissatisfaction with the Fed and says he believes interest rates are low. He believes that Americans should be able to borrow cheaper than they are now,” she added.
Trump took it The true society He opposes Powell on Monday, claiming lower interest rates.
“Many people are looking to “preemptively reduce interest rates.” With energy costs dropping, food prices (including Biden’s egg disaster!) significantly lower, and most other “things” are falling, there is virtually no inflation. ”
Powell elicited Trump’s rage in his analysis that tariffs could cause economic growth, but inflation will increase.
Trump said last week he couldn’t wait for the Fed’s chair to be “dismissed” and insisted that if he tried to fire him, Powell would leave. Kevin Hassett, chairman of the White House National Economic Council, said on Friday that the White House was looking for ways to fire Powell.
Leavitt said she spoke to Hassett on Tuesday. Hassett also questioned whether the Fed is acting out of politics.
“He’s questioning whether the Fed’s independence and whether they’re actually doing things from the greatest economic interests of the economy or are they doing it for partisan reasons,” she said.
The 90-year-old Supreme Court precedent is likely to protect Powell from being fired by the president for anything other than fraud or strict neglect of duties. Powell repeatedly argued that he would not be able to be legally fired and would refuse to leave until the end of his term, which would end in 2026.
