President Trump has criticized Fed Chair Jerome Powell for several months over his decision to delay interest rate cuts. Trump claims that higher rates have cost the U.S. over $1 trillion in government debt payments.
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Still, Trump said that it is “unlikely” he will fire Powell. “I think he’s done a bad job, but he’s going to be out pretty soon anyway,” said Trump in a meeting with Philippine President Ferdinand Marcos Jr. on Tuesday. “In eight months, he’ll be out.”
Trump Berates ‘Numbskull’ Powell
Trump continued to stress that interest rates should be 3% lower than the current rate that sits in a range between 4.25% and 4.30%, adding that the economy is in a healthy position. “People aren’t able to buy a house because this guy is a numbskull,” said Trump. “He keeps the rates too high and is probably doing it for political reasons.”
The next interest rate decision meeting is set for July 30, although there is only a 4.7% chance for a rate cut. The next meeting on September 17 holds a 58.5% chance of a rate reduction.
Track the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
