18.06.2025 14:22

President Donald Trump launched another scathing attack on Federal Reserve Chairman Jerome Powell just hours before the Fed's crucial interest rate decision on Wednesday. His remarks, delivered in impromptu comments outside the White House, painted a picture of deep dissatisfaction with the central bank's current monetary policy. Trump vehemently criticized Powell, employing harsh language and questioning his competence.

Trump's criticism centered on his belief that the Fed's key interest rate should be significantly lower, suggesting a reduction of at least two percentage points. He directly accused Powell of being "stupid" and predicted the Fed would not cut rates during the upcoming meeting. This latest verbal assault continues a pattern of years-long criticism directed at the Fed chair. Trump contrasted the lack of rate cuts in the US with the numerous cuts implemented in Europe, further fueling his discontent.

The timing of Trump's comments, approximately four hours before the Federal Open Market Committee's announcement, added considerable weight to his words. Market analysts, however, had already anticipated no change in interest rates at this meeting, with the next potential shift expected in September. The Fed's current target for overnight borrowing rates remains in the 4.25%-4.5% range. This lack of anticipated action aligns with the reported hesitation among Fed officials, who cited lingering uncertainties about the economy's trajectory.

Contributing to the uncertainty, the long-term economic effects of Trump's earlier tariffs remain unclear. While inflation indicators have shown little change since the tariffs' implementation in April, various economic factors appear to have mitigated their impact. This ongoing situation underscores the complexity facing the Federal Reserve as it navigates the current economic landscape. This is developing news, and updates will be provided as they become available from internet sources.