Trump calls Powell a “stubborn idiot” over the Fed’s interest rate policy
The federal Hermes CIO of the stock will be processing interest rates, customs plans for President Donald Trump, and weight in the market while appearing on the morning with Maria.
president Donald Trump On Friday, it increased the attack on Federal Reserve Chairman Jerome Powell, calling on central bank policymakers to “consider” federal policy decisions.
Trump repeatedly criticized it Chairman Powell The central bank leadership has included recent requests to cut interest rates to boost the economy, despite appointing him as Fed chairman in 2017.
He took him to his true social platform early Friday morning and urged the Federal Reserve Governor’s Committee to take control from Powell if he resists immediate interest rate cuts.
“The stubborn idiot Jerome “too late” Powell now has to cut interest rates significantly. If he continues to refuse, the board should assume control and do what everyone has to do! ”
Trump hits Powell as “total loser” after the Fed’s unchanged holiday
President Donald Trump has urged the Federal Reserve Committee to take charge of monetary policy if Fed Chairman Jerome Powell does not agree to immediate interest rate cuts. (Reuters/Getty/Getty Images)
Federal Reserve System Its interest rate policies are determined collectively through a panel of 12 members known as the Federal Open Market Committee (FOMC).
FOMC will not be meeting again from September 17th to 18th. This would leave an extraordinary emergency meeting as the only way policymakers can cut their fees ahead of time.
Emergency meetings to reduce interest rates by FOMC are rare and took place in March 2020 at the beginning of Covid Pandemic.
Federal Reserve Chairman Jerome Powell warned that tariffs could lead to a one-time price hike, but could lead to more permanent inflationary pressures. (Photo by Roberto Schmidt via Getty Images/Getty Images/AFP)
Early on Friday morning, Trump’s post came just after FOMC, which stabilized interest rates for its fifth consecutive meeting on Wednesday.
Powell cited the rise in levels of economic uncertainty related to labor market conditions and the effects of tariffs on inflation and consumer prices as reasons for the suspension. He added that the economy is in a solid position and that the central bank is well suited to deal with signs of economic degradation.
The Fed’s favorite inflation gauge shows consumer prices have risen again in June
On Thursday, the Department of Commerce’s Personal Consumption Expense (PCE) index was released – Fed support Inflation Gauge – This has led to the headline PCE inflation rising from 2.3% in May to 2.6% in June, significantly exceeding the Fed’s 2% long-term inflation target.
Inflation attenuated market rate cuts prospects at the Fed’s next meeting in September, but reversed on a weaker forecast on a massive downward revision in July’s employment report, which has in place solid employment benefits over the past two months.
U.S. employment growth cooled in July amidst economic uncertainty
Labor Bureau July Jobs Report Last month, the economy showed its addition to 74,000 jobs. That’s well below the estimated 110,000 economists voted by LSEG.
Additionally, the report revised the increase in jobs of 144,000 in May and 147,000 in June to 19,000 and 14,000 respectively. Taken together, these revisions pointed out that the Bureau of Labor Statistics is a “largest than normal” revision, leaving jobs in months lower than the previously reported 258,000 jobs.
An unexpectedly weak employment report has reassessed the market to reassess the possibility of interest rate cuts in September, according to the CME FedWatch tool.
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As of late-night tool reading on Friday, the odds of a 25 base point cut jumped to 78.8%, following soft-labor market data.