Former President Donald Trump voices concerns about high interest rates and hints at pressuring Federal Reserve Chair Jerome Powell to adopt a looser monetary policy if he is re-elected. During an interview set to air on NBC’s “Meet the Press,” Trump also suggests the possibility of removing Powell from his position. Trump criticizes the current interest rates, arguing that they prevent people from buying homes and borrowing money. When asked about strong-arming Powell, Trump states that it depends on inflation levels but expresses a desire to decrease inflation.
Trump’s comments reflect the historically confrontational relationship between the two figures during Trump’s presidency from 2017 to 2021. Through Twitter, Trump frequently criticized Federal Reserve officials, going as far as calling them “boneheads” and comparing Powell to an inept golfer. These remarks occurred while the Fed was increasing interest rates in 2018 and 2019. Trump acknowledges that he exerted pressure on Powell, leading to a decrease in interest rates. In 2019, the Fed began lowering rates, eventually reaching near-zero as the Covid pandemic emerged in March 2020. It is worth noting that Trump appointed Powell in 2018 to succeed Janet Yellen, who later became Treasury Secretary under President Joe Biden. When asked about the possibility of replacing Powell if re-elected in 2024, Trump remains ambiguous.
Trump highlights his previous “jawboning” against Powell and its impact on lowering interest rates. He boasts about the favorable housing market during his presidency and expresses concerns about the current state of the economy, citing rising food prices and inflation. Inflation has become a significant problem during the Biden administration after remaining relatively stable under Trump and former President Barack Obama. The consumer price index has risen by over 16% in just over two and a half years of Biden’s presidency, compared to less than half that during Trump’s entire term. Economist attribute the increase in prices to the early days of the Covid crisis, which led to supply chain disruptions, a shift in consumer demand from services to goods, and substantial fiscal stimulus from Congress and the Fed.
Trump pledges to tackle inflation by emphasizing energy independence, drilling for oil, and reducing national debt. He asserts that he would prioritize decreasing inflation and anticipates positive outcomes by restoring energy dominance. The Federal Reserve is expected to hold rates steady in its upcoming meeting. Powell’s term as Fed Chair expires in February 2026.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
