US President Donald Trump called on Friday Federal reserve chair Jerome Powell immediately faced pressure on inflation concerns, even to cut interest rates, even the central bank began with a broad new tariff of his administration.
“This will be a perfect time for Fed Chairman Zerome poly To cut interest rates, “Trump posted on the truth social.” Energy prices are below, interest rates are below, inflation is low, even eggs are 69%, and jobs are up, all within two months – a big win for America. Stop playing interest rates, geromes, and politics! He said.
Trump’s comments came two days after announcing the aggressive new tariff, which provoked global markets and feared a fresh inflation wave.
Earlier on Friday, Federal Reserve Chairman Zerome Powell warned that the tariffs are “much larger than expected” and “there are” highly probables “due to the minimum temporary increase in inflation. “It is also possible that the effects may be more frequent,” he said.
Powell, while speaking to reporters at Arlington, Virginia, emphasized the vigilant approach of the Fed, stating that the central bank “is well deployed to wait for more clarity before adjusting the interest rates”. He said, “We are waiting a lot and watching,” he said. “And it seems just as the right thing in this period of uncertainty”, Powell said.
According to CNBC News, the market has already responded to the fears of recession, the 10 -year -old American treasury yield is falling below 4%. Meanwhile, traders are now priced at at least four 0.25-point rate cuts this year, which is from the previous two projections of the Fed.
However, Fed’s main concern remains inflation. “Our obligation is to ensure that the one -time growth in the price level does not become a problem of an ongoing inflation,” Powell said, pointing to the complications created by Trump’s trade policies.
Economists, including nationwide Kathy Bosjanik, believe that Fed is in a difficult situation. “Fed is in a difficult place, which is rapid with inflation and ready to slow the economy.”
Despite the market gitlers, Trump has dismissed concerns, comparing the instability of the patient undergoing surgery. Powell, when asked about the comment, refused to directly answer: “I practice not to respond to the comments of any elected officials … it’s not appropriate for me.”
