President Donald Trump attacked the president of the Federal Reserve, Jerome Powell, on Thursday morning, saying that his dismissal “cannot occur quickly enough” after the head of the Central Bank warned that Trump’s tariffs will probably worse inflation.
Key data
In its publication, Trump mentioned the decision of the European Central Bank to cut interest rates at 25 basic points and lashed out at Powell for “arriving too late and being wrong” when refusing to do the same.
On Wednesday, Powell went to the Chicago Economic Club and said it is very likely that Trump’s tariffs “generate at least a temporary increase in inflation.”
Trump responded to Powell’s speech in his publication, saying he was a “typical and complete disaster!”
In an apparent response to comments on inflation, the president said that the prices of food and oil worldwide had dropped and pointed out, without offering evidence, that “states Unodes are getting enriched with tariffs.”
Trump said again that Powell should have dropped the interest rates “a long time” and “should certainly lower them now”, despite the fact that the president of the Fed pointed out otherwise.
The president ended his publication by saying: “Powell’s dismissal cannot come quick enough!”
What did Powell say in his speech on Wednesday?
After pointing out that tariffs could cause high inflation, the president of the FED declared before the Chicago Economic Club that the Central Bank faced a “complex scenario in which our double mandate goals are compromised.” The comment referred to the Fed efforts to control inflation and maintain a solid labor market, which would probably be compromised if the United States faces an economic deceleration as a result of tariffs. Despite Trump’s repeated demands to cut interest rates, Powell indicated that Fed could adopt an expectant position: “We are well positioned to wait for the situation to be clarified before considering any adjustment to our political position.”
When does Powell’s mandate end?
The Powell presidency of the Federal Reserve will be extended until March 2026, while its mandate as governor of the Central Bank will end in February 2028.
Can Trump dismiss Powell before he finishes his mandate?
Trump’s rhetoric towards Powell has raised the concern that the president can try to dismiss the president of the Federal Reserve before he finishes his mandate. The president has fired senior officials from other federal agencies, decisions that have since faced legal challenges. Earlier this month, the president of the Supreme Court, John Roberts, arrested a ruling from a lower court that prevented the dismissal by Trump from a member of the National Board of Labor Relations and a member of the Merit Systems Protection Board while their legal challenges against dismissals were processed. It is not clear if Trump could use this failure to fire Powell. On Wednesday, to the president of the Federal Reserve, when asked about the ruling, he replied: «I do not believe that this decision applies to the Federal Reserve, but I do not know. It is a situation that we are monitoring closely ».
This article was originally published by Forbes Us.
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