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Donald Trump has attacked the head of the US Central Bank for not lowering interest rates, saying that “the cessation of the Powell’s Jerome cannot come soon enough!”.
US President went to social media to restore Powell’s criticism ahead of the third interest rate this year by the European Central Bank (ECB).
On Thursday, he announced that he had reduced his key rate “due to the growth of trafficking.”
Trump, nominating Powell as the chairman of the federal reserve server in 2017 during his first term, wrote that “always too late and wrong” to reduce borrowing costs.
Trump continued: “Oil prices are declining, products (even eggs!) Clean, and the United States will get rich at the tariffs. It was too late to reduce interest rates like the ECB long ago, but it must certainly lower them.”
While oil prices have fallen since the beginning of the month, when Trump has submitted its tariff regime, egg prices rose to $ 6.23 per ten, official data reports.
Meanwhile, BBC did not find evidence for Trump’s claims How much money collects US from tariffs.
When Trump attacked Powell, Christina Lagard, the ECB president defended her American counterpart.
“I respect my friend and respected colleague Jay Powell,” said Lagard, discussing the decision to reduce European interest rates from 2.5% to 2.25%.
“We have solid, sustainable relationships between the central bankers.”
The president broke out after Powell said the US economic growth would be reached and consumer prices would rise as a result of Trump tariffs.
He said import taxes were larger than the bank was expected to go beyond the higher end of its estimates.
In the global stock markets there were shocks when investors responded to tariffs and increasing the trade war between the US and China.
Mr. Powell said: “The level of tariffs announced so far is much greater than expected.
“The same thing that may be the economic consequences that will include higher inflation and slow growth.”
The US president said tariffs will increase US production and jobs, but economists warn that they are at risk of inflation. Trump campaigned to reduce inflation.
It Not the first time Trump target PowellWhom he nominated to replace Janet Yellen, which the president accused of maintaining interest rates too low.
The president’s campaign included calls to reduce interest rates to bring relief to the borrowers.
Since his return to the post, Trump has launched a trading war, introducing a 10% tax imported in the US from the vast majority of countries.
With China, it has grown tariffs by renting a 145% tax on Chinese goods, although there are several smartphone release. China has returned with 125% tariffs on American products. On Wednesday, the White House said that when new tariffs are added to existing, fees on some Chinese goods could reach 245%.
Mr. Powell said that despite uncertainty and disassembly in the markets, “the US economy is still in a firm position.”
So far, he said, the Fed can retain its orientation interest rate stable “to expect greater clarity before considering any adjustments.”
The fed -oriented fed rate is currently set in the range from 4.25% to 4.5%, where it took place since December after a number of decreases at the end of last year.
If the tariffs push inflation, as many economists expect, the Fed may decide to hold or even raise rates. Traders on Wednesday have retained their rates, which will continue to reduce the rates this year.
But the Fed also has a maximum employment mandate as well as stable prices.
If it is caught between inflation rising and rising unemployment rate, Mr. Powell said that “we will look at how far the economy is from each goal,” and then look at “potentially different temporary horizons” to obtain prices under the control and reduction of unemployment.
“As this Great Chicago Ferris Buler once noted,” life is moving pretty quickly, “he added.
