US President Donald Trump has more insults for the chairman of the Federal Reserve Jerome Powell.
During a signing ceremony on Thursday, Trump claimed that the government would save $ 600 billion a year in short -term debt payments if Powell would lower the federal fund rate by 2 percentage points.
In May, the Federal Open Market Committee (FOMC) announced that it was planning to maintain the target range for the federal funds at 4.25-4.5%, with the argument that this was the most suitable level to achieve both maximum employment and controlled inflation. The FED has kept the interest rates stable since December if it reduced the rate by 0.25%.
Trump says he is not going to fire Powell, but he closed the FED chair because he did not adjust the course.
“We are going to spend $ 600 billion a year – $ 600 billion – because of a Numbskull that is there [and says] “I don’t see enough reason to lower the rates now.” And the problem he has, and I explained to him … now lower your rates, there is no inflation. We have fooled it, we have dropped the prices. ”
Inflation increased by 2.4% in May, according to the Bureau or Labor Statistics. That was slightly less than the increase of 2.5% predicted by economists, CBS reports.
Powell met Trump last month after a barrage of insults from the president. However, the FED was noted in a statement after the meeting that Powell did not discuss the expectations of the interest rate at the president.
“During the president’s invitation, chairman Powell met the president today at the White House to discuss economic developments, including for growth, employment and inflation.
Chairman Powell did not discuss his expectations for monetary policy, except to emphasize that the path of policy will depend entirely on incoming economic information and what that means for the prospects.
Finally, chairman Powell said he and his colleagues on the Federal Open Market Committee (FOMC) will set the monetary policy, as required by law, to support maximum employment and stable prices and will only take these decisions based on careful, objective and non-political analysis. “
Trump repeatedly criticized Powell because he did not lower the interest rates and said earlier in May that communication with the FED chair was ‘like talking to a wall’.
“The Bank of England has cut. China cuts. Everyone cuts him. I don’t know, we’ll see what’s happening. It’s a shame. I call him ‘too late’. Too late Powell, that’s his nickname. And it’s a shame, it’s ridiculous … he’s always too late.
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