The Federal Reserve is waiting to see the residual impacts of the country’s new tariff plan before reducing its key interest rate, leaving the man in charge of implementing the agenda less than happy.
“‘Too Late’ Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO,” Trump wrote in an excoriating Truth Social post about Federal Reserve Chair Jerome Powell Tuesday.
“No inflation, great economy—We should be at least two to three points lower,” Trump continued. “Would save the USA $800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate.”
“I hope Congress really works this very dumb, hardheaded person, over,” he concluded. “We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!”
But Powell fully disregarded the president’s call to reduce rates.
“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said in prepared remarks obtained by The Associated Press.
The public back-and-forth could be the beginning of a tough couple of days for Powell on Capitol Hill, as the chairman is expected to testify before both chambers of Congress.
Leading economists outside of the Federal Reserve have similarly argued that now is not the time to cut interest rates. Atlanta Fed President Raphael Bostic told Reuters that the country has “space and time” to figure out its ideal rates, especially since companies have already decided to increase product prices this year in reaction to hampered global supply chains.
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