At a Michigan rally commemorating the 100th day of his second term, President Donald Trump once again remarked on Federal Reserve Chair Jerome Powell, claiming the superiority of his own knowledge over the former’s without taking his name.
What Happened: Addressing supporters at Macomb Community College, Trump said: “Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job, but I won’t say that… You’re supposed to let him do his own thing, but I know much more than he does about interest rates, believe me.”
Trump’s comments come in the heels of a report shared by The Conference Board, which indicates that consumer confidence in the U.S. dropped sharply in April, with the Expectations Index plunging to 54.4. This is its lowest level since October 2011.
The overall Consumer Confidence Index fell 7.9 points to 86, marking its fifth consecutive monthly decline. The drop implies increasing pessimism about inflation and job prospects, triggering fears of a potential recession as values below 80 have historically signaled downturns.
Why It Matters: Trump’s latest remarks come as tensions between him and the central bank over the direction of interest rate policy continue to fester. While the Fed has maintained its benchmark federal funds rate at 4.33%, Trump has continuously called for further cuts, arguing that inflation is no longer a pressing issue.
The Fed, however, remains cautious due to economic turmoil, partly generated by Trump’s tariff policies. Despite his attacks, Trump has rescinded calls for removing Powell, saying, “I have no intention to firing him.”
Despite tensions with Trump, Powell’s stance has been firm. His refusal to cut rates is grounded in the Fed’s data-driven mandate, enduring concerns about inflation, and a robust labor market. Powell has also reminded critics that the Fed’s authority is based on law, and its leaders are safeguarded from removal over mere policy disagreements.
Read Next:
Image Via Shutterstock
Add Comment