Trump urges Congress to burn “silly and hard” Powell with the Fed’s latest attack that refuses to cut interest rates
The Fed’s chairman will appear before the House Financial Services Committee held on Tuesday morning, and again before the Senate Banking Committee on Wednesday morning, before Congress today and tomorrow.
Powell will be given the opportunity to justify why he and other members of the Federal Open Market Committee (FOMC) have so far refused to lower the base rate from 4.25 to 4.5% in 2025.
The FOMC chair is consistent in his reasoning and distances himself from political rhetoric, but he is still facing criticism from economists who say his relatively harsh financial stance is unfair.
Trump pushed politicians hard at two meetings this week to Powell on why he didn’t cut the base fees, giving the president his wish.
Write about the true society A few hours ago, Trump said: “Congress really hopes, this very stupid, hard-pressed person, we will continue to pay for his incompetence.”
Trump’s justification for pushing to lower rates is based in part on the facts of others Central banks around the world are beginning He relaxed his policy and said, “Europe had 10 cuts, zero. There was no inflation.
“In addition to saving the US $800 billion a year.
Promoting this low rate is the opposite of Trump’s questions on campaign trails last year. While running for president, Trump claimed Powell was in politics and would give him financial benefits if he was cut off to Biden Camp.
As soon as he won the oval office, Trump began to change the tact and ask Powell to cut back.
This undoubtedly shows why central banks are mandated to be independent, allowing the main levers of the economy to be used for the long-term benefits of businesses and consumers. In contrast to the whims of an oval office.
Powell and the FOMC are clarifying why they don’t want to cut, citing the factors that could put two aspects of their dual mission (maximum employment and 2% inflation) in the conflict.
The keyword for the last few meetings was “clearity” –Rather, FOMC members would like to wait for more concrete. Data before you start creating a path to a more normalized interest rate.
The role of the FOMC is not to comment on policy; Inflationary pressures in tariffs and geopolitics.
The market may prefer a cut, but what really surprises analysts and investors is when pressure on Trump’s base rates flows into the tampering problem.
For example, when Trump threatened to fire Powell earlier this year, the market reacted negatively with investors. Warned to expect a “severe” drop in asset prices If the president has so far gone to question the authority and autonomy of the Fed.
Trump I immediately backtracked itPowell sits his term because it ended in 2026, saying that he was first appointed by the president in his first term.
Time of change
Trump’s claim that FOMC’s refusal to cut base fees costs the economy, but some economists believe Powell should not be based on current decisions based on potentially inflation factors.
For example, the oval office has changed its stance on tariffs multiple times, whether it is a 90-day suspension, agreements with certain countries, or even a bigger hike threat to things like the EU.
However, experts point out that the sharpest end of these threats has not yet been realized, and both inflation and employment data have remained fairly flat for the past few months.
For example, Jeremy Siegel, professor emeritus at the University of Pennsylvania Wharton School, said, “It is simply to treat it as a bad economy as a reason to limit tax-induced price levels. A 10% sales tax does not guarantee financial tightening. 3.5% – matches the true neutrality rate of the economy.”
Written for WisdomTreeas he is a senior economist, Siegel added that Federal Reserve Governor Chris Waller is insisting on potential interest rate cuts in July, “Are he auditioning to replace Powell? I agree with Waller.