Washington: Amid heated dispute over monetary policy, US President Donald J. Trump accused Chair of the Federal Reserve Jerome Powell of being stubborn, urging the Fed Board to assume control and bring down the interest rate.
According to Kuwait News Agency, Trump took to his Truth Social platform on Friday, criticizing Powell and expressing his dissatisfaction with the current interest rates. "Jerome 'Too Late' Powell, a stubborn MORON, must substantially lower interest rates, NOW," Trump insisted. He further urged the Fed Board to take action if Powell continues to refuse adjustments, stating, "IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!"
The President's comments come after the Federal Reserve decided to maintain short-term interest rates between 4.25 percent and 4.5 percent on Wednesday. This decision was met with notable dissent from within the Fed board, marking the first double dissent in more than three decades. Fed Vice Chair of Supervision Michelle Bowman and Governor Christopher Waller, both contenders for Trump's nomination to replace Powell, voted against the majority to lower interest rates, reflecting the pressure from the President.
The Federal Open Market Committee (FOMC), consisting of nine members, including all Fed board members and a rotation of regional reserve bank officials, typically votes unanimously. However, this recent dissent signifies growing tension and differing opinions on the direction of monetary policy.
During a press conference on Wednesday, Powell attempted to downplay the significance of the dissenting votes, commending Bowman and Waller for their clear and logical reasoning during the meeting. Despite this, the President's public remarks indicate a continued push for lower interest rates, highlighting the ongoing debate within the Federal Reserve and the broader economic strategy of the administration.