President Donald Trump has again pressured Federal Reserve Chairman Jerome Powell to lower interest rates, arguing that inflation is no longer a concern and that maintaining high interest rates could lead to a slowdown in the U.S. economy.
In his statement today, Trump pointed to falling energy and food prices as key indicators that inflation is under control. “The ‘Preventive Cuts’ in Interest Rates are being called for by many,” Trump said. “Energy Costs are way down, food prices are down significantly, and many other ‘things’ are trending down, with almost no inflation.”
The president warned that if the Fed doesn’t act quickly, economic growth could stall. “We could have almost no inflation, but we could have a slowdown in the economy if Mr. Too Late, a big loser, doesn’t lower interest rates now,” Trump said, referring to Powell by a nickname he has used in past criticisms.
Trump also suggested the US was lagging behind, noting that the European Central Bank had already cut interest rates seven times. Trump accused Powell of political bias during the 2020 election cycle, claiming the Fed Chair had cut rates to benefit then-President Joe Biden and Vice President Kamala Harris. “Powell has always been ‘Too Late,’ except during an election cycle… How did that play out?” he added.
The Fed chairman has yet to respond to Trump’s comments. Powell has previously said the importance of data-driven decisions and that the central bank is independent of political influences.
The first interest rate cut in the US is currently expected in June. The decision in May is expected to keep interest rates constant.
Following Trump’s statement, there was an attack on the BTC price. The world’s largest cryptocurrency has gained more than 3% in the last 24 hours at the time of writing.
*This is not investment advice.
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