Trump lashes out at Powell’s “disaster” in front of the Fed and calls for a rate cut

Washington, June 6 (EFE).- U.S. President Donald Trump on Friday called the work of Federal Reserve (Fed) Chairman Jerome Powell a “disaster” and reiterated his request that, following the example of Europe, he lower interest rates because “there is practically no inflation” in the U.S..

Trump went on the offensive again against the banker in two morning posts on his Truth Social network, where he did not refer to Powell by name, but did use the nickname “Too Late” with which he usually alludes to the economist.

“If the Fed ‘is too slow’ to CUT, we would dramatically reduce interest rates, both short and long term, on the matured debt,” he said as he indicated that Democratic former President Joe Biden (2021-2025) “focused primarily on the short term.”

According to Trump, in the country “there is practically no inflation (not anymore), but if it returns, THE RATE IS RAISED TO COUNTERACT IT. Very simple!”.

He also asserted that the Fed’s delay in lowering rates “is costing the country a fortune” and complained that “borrowing costs should be MUCH LOWER!”

“‘Too late’ from the Fed is a disaster! Europe has had 10 rate cuts, we’ve had none. Despite that, our country is doing great,” he wrote a few minutes earlier in another post on Truth Social.

Trump has repeatedly urged the Fed to lower rates, which are currently in the range of 4.25% to 4.5%. The next Federal Open Market Committee (FOMC) meeting to evaluate possible rate hikes or cuts will take place on June 17 and 18.

Two days ago, the president had already requested a cut in rates due to the stagnation recorded in the private employment sector, according to a report by the payroll processing firm ADP, which reported an increase of only 37,000 jobs in May, well below the forecast of 110,000 anticipated by analysts.

Trump has had public clashes with Powell, whom he has not only criticized for acting too late, but has even claimed to know more than him, called him a “fool,” and threatened to fire him, something the law does not allow. Meanwhile, the Fed chairman has defended the independence of the body.

Last week, both met face to face for the first time since the Republican returned to power last January.

The Fed has already indicated that it expects “one or two rate cuts” by the end of the year. EFE