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Trump Calls for Immediate Fed Rate Cuts Amid ECB Actions
President Donald Trump has publicly called for immediate rate cuts by the U.S. Federal Reserve, criticizing Chair Jerome Powell’s current stance, in response to the European Central Bank’s actions. Powell emphasizes the Fed’s independence against political influence.
Key Developments, Impact, and Reactions
President Trump’s statement on Truth Social targets Jerome Powell, urging his “termination” due to delayed rate cuts compared to the European Central Bank’s ongoing measures. Trump highlights lowered oil and grocery prices, crediting U.S. economic “gains” to tariff usage.
Powell has responded by reiterating the Fed’s legal independence, reinforcing that policy decisions occur without political considerations. The Fed has not announced immediate rate adjustments, maintaining its caution against inflating tariffs’ potential impacts.
Market response has been measured, with experts noting potential volatility in U.S. Treasury bonds and currency markets. The Fed’s stance likely contributes to stabilization, though uncertainties surrounding tariffs linger. Powell’s legal security restricts removal except “for cause,” barring policy disagreements.
“Powell’s termination cannot come fast enough! … Oil prices are down … Powell should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.” — Donald Trump, President of the United States, Truth Social
Historical Tensions Between Trump and the Federal Reserve
President Trump has consistently pressured the Fed during both his first and current terms. Despite his criticism, Powell has maintained the institution’s independent course since 2018. This friction mirrors previous tensions, although the Fed’s focus remains stable prices and employment, independent of external pressures.
Experts caution that political pressures can induce market instability, yet Powell’s firm stance reinforces existing financial frameworks. Analysts anticipate ongoing debates between monetary policy objectives and geopolitical influences, particularly surrounding tariffs as a contentious economic lever. Powell and the Fed Council continue evaluating data to guide policy, ensuring any rate changes support long-term stability.
U.S. Treasury announces new financial measures for economic stability.
Source: https://coincu.com/332794-trump-criticizes-powell-fed-rate/