Trump says that the termination of the president of the Fed Powell cannot come quickly enough “while the president seizes interest rates

Washington President (AP), Donald Trump, criticized the president of the federal reserve Jerome Powell on Thursday, reiterating her frustration that the Fed did not aggressively reduced interest rates and saying that “the termination of the Central Bank chief cannot come quickly enough”.

Trump hinted to move to Fire Powell, whose mandate does not expire before May 2026. The wide side of the Republican president occurs one day after Powell reported that the Fed will maintain his unchanged key interest rate while he is looking for “greater clarity” on the impact of policy changes in fields such as immigration, taxation, regulations and prices.

Watch: Powell says Fed can wait for interest rates movements while the price battle with China continues

Powell also reiterated that Trump prices would probably increase inflation and slow down the economy, which could make Fed more difficult to reduce rates anytime soon. The president of the Fed also suggested that the central bank will focus on the fight against inflation as a result of prices, even if the functions weakened the economy. Powell's comments contributed to a drop in stock prices on Wednesday.

“Oil prices are declining, grocery stores (even eggs!) Are declining and the United States becomes rich in prices,” said Trump in an article on social networks.

Referring to the European Central Bank, he added that Powell “should have reduced interest rates, such as the ECB, a long time ago, but it should certainly lower them now. Powell's dismissal cannot come quickly enough! ”

The European Central Bank reduced its key interest rate from 2.5% to 2.25% on Thursday.

Powell was initially appointed by Trump in 2017, and he was appointed to another four -year term by President Joe Biden in 2022. At a press conference in November, Powell said he would not resign if Trump asked him to resign.

He also declared that the withdrawal or demotion of the senior officials of the Fed was “not authorized by law”.

Trump's comments come in the context of a legal case at the Supreme Court which could determine whether the presidents can dismiss the independent agencies such as the Fed.

The case stems from Trump's layoffs from two independent agencies. The Supreme Court has left standing layoffs while he considers the case. This could make a broader decision this summer which would allow the president to dismiss officials of the Fed, including the president.

Powell said the Fed looks closely, adding that it may not apply to the Fed. Lawyers of the Trump administration also argued that allowing the president to dismiss the two officials would not erode the independence of the Fed.

“It is difficult to overestimate the consequences at this stressed moment of a court decision which concluded that President Trump … has the power to reject independent agency heads and did not establish a clear projection for the Fed,” Krishna Guha, analyst of the investment bank Evercore Isi on Thursday. “If you liked the price debacle on the markets, you would like the trade in loss of loss.”

Powell began Trump's second term in a relatively safe place with a low unemployment rate and inflation progressing closer to the 2% target of the Fed, conditions which could have spared the President's American Central Central Banker.

But Trump's aggressive and random prices have increased the threat of a recession with higher inflationary pressures and slower growth, a difficult situation for Powell, whose mandate is to stabilize prices and maximize employment. The economy weakening due to Trump's choices, the president seems to try to blame Powell.

Powell, in its remarks at the Chicago Economic Club on Wednesday, said that the Fed will base its decisions only on what is best for all Americans.

“This is the only thing we are going to do,” said Powell. “We are never going to be influenced by political pressure. People can say what they want. It's good, it's not a problem. But we will do what we do strictly without taking into account political or other factors. ”

“Our independence is a matter of law,” continued Powell. “We are not removable, except for the cause. We serve very long, apparently endless terms. ”

Trump triggered a rash of prices that put the American economy and the Fed in an increasingly perilous place. On April 2, the president launched increases in aggressive prices based on American trade deficits with other nations, causing a financial market reaction that almost immediately led him to announce a 90 -day break in which most countries would be billed a reference rate of 10% while negotiations take place. But Trump increased its price increases on China at a rate of 145%, in addition to its existing prices on Canada, Mexico, cars and steel and aluminum.

Wall Street banks such as Goldman Sachs have increased their probability that a recession can begin. Consumers are increasingly pessimistic in surveys on their job prospects and fearing that inflation would be carried out as the cost of import taxes is transmitted to them. The risk of stagflation and high stagflation growth would make it more difficult for the Fed to respond with the same manual as recent slowdowns.

The Laboratory of the Budget of the University of Yale estimated that the increase in inflationary pressures of the prices would be equal to the loss of $ 4,900 in an average American household.

Journalists from AP Sagar Meghani and Christopher Rugaber contributed.

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