Trump warns of slowing the environment and triggers a sale unless the Fed is cut

Howard Schneider and Ismail Shakil

(Reuters) – The US economy could fall unless interest rates are dropped immediately, President Donald Trump repeated criticism of Federal Reserve Chairman Jerome Powell on Monday.

“These costs are so low that there’s little inflation just what I predicted they’d do, but it’s too late, the main loser, and there’s a slowdown in the economy unless we’re lowering interest rates,” Trump said in the post on True Society.

Comments, and the apparently intense chair pressure on Trump in the administration, he wants to go away, and as investors and analysts have contemplated the fallout, ignite the battle for the Fed’s monetary policy independence, the bonds are even higher if investors and analysts contemplate the fallout, ignite the fight for the Fed’s monetary policy independence, and try to eliminate Powell by the end of his term a little while ago.

It’s not clear that Trump has the authority to do so. Even if the Fed’s governance structure goes beyond the interest rate decisions to the remaining board members and the regional bank president, the White House could be forced into a deeper attack on the Fed’s seven-man governor general committee.

Trump’s repeated threat to fire Powell will seek to reduce the likelihood that a rapid reduction in the Fed will cause harm to the labor market due to the widely anticipated economic slowdown and his tariffs and other policies, but Fed policymakers cautionally urging inflation of concern.

The Fed will be held from May 6th to 7th and is widely expected to stabilize benchmark interest rates in the current range of 4.25% to 4.50%.

The outlook is weak

Both growth outlook and overall sentiment are declining as Trump ratcheted efforts to impose import taxes on goods from major US trading partners and many core products, and top economists increased estimated odds of a recession this year. The conference committee’s key economic indicator index fell 0.7% in March, surpassing the recession level, but “pointed to move forward with economic activity,” Justina Zabinsca La Monica, senior manager of the conference committee’s business cycle indicator, said along with consumer sentiment and a decline in manufacturing and a decline in stock prices.

Inflation is expected to decline on future measurements, but there is also a wider agreement that Trump will place on import duties to likely return to more than 4% for the remainder of the year.