Washington: US President Donald Trump has once again criticized the federal reserve to maintain high interest rates.
In a new explosion, he suggested that he could rethink the deletion of the president of Fed, Jerome Powell – a decision he had threatened several times before but never made.
“I do not know why the board of directors does not prevail over (Powell),” wrote Trump in a long article on the policy of the Social Fed. “Perhaps, just perhaps, I will have to change my mind on the dismissal? But whatever, his mandate ends soon.”
Trump added: “I fully understand that my strong criticism makes him more difficult for him to do what he should do, reduce rates, but I tried in all different ways.”
Fed chairs have long been considered isolated from the presidential dismissal unless for misuses or misconduct, but Trump has repeatedly threatened to test this legal border by threatening to dismiss Powell.
Trump almost often the course of these threats. “I’m not going to dismiss him,” he told the White House on June 12.
On Wednesday, the Fed held rates in the range of 4.25% to 4.50% and slower forecasts as well as higher unemployment and inflation by the end of the year.
The governor of the Fed, Chris Waller, who was launched as a possible choice of Trump to succeed Powell, said on Friday that with a drop in inflation and the labor market showing signs of softening, the rate reductions should be envisaged in July.
But even Waller joined the unanimous Fed’s decision on Wednesday to maintain the unchanged prices, showing no will among the six colleagues member of the board of directors of Powell or the five regional presidents of the voting Fed bank to “prevail”. The Fed decisions are generally based on a consensus and more than one or two DESSISSES are rare.
Partly elected on the conviction of voters that he could slow down high inflation, the American republican president imposed pricing hikes during his mandate. Powell, echoing the academic consensus, said that some of these prices would cause higher consumer prices.
Powell’s mandate ended in May 2026, and Trump should appoint a successor in the coming months.
A decision by the Supreme Court in May relieved the concerns that Trump could dismiss Powell, while the judges described the Fed as “a single-structured quasi-private entity”.
