Trump Criticizes Fed Chair Powell Again, Calls for Lower Interest Rates

Donald Trump criticized the US central bank for failing and expressed his desire for interest rates to be at 1% while suggesting that Jerome Powell, the chair of the Federal Reserve, should resign. This comes after Trump previously called Powell a 'stupid person' and questioned if he could appoint himself at the Fed. Trump accused Powell and the board of allowing detrimental events to occur in the US, emphasizing that the country could save trillions in interest costs if the Fed was doing its job correctly. Despite Trump's threats, markets do not anticipate an interest rate cut by the Fed until September.

The Fed has maintained borrowing costs at 4.25%-4.5%, with the US interest rate being a range rather than a single percentage. Inflation has risen to 2.4%, partly due to tariffs imposed by Trump, prompting the Fed to increase interest rates to curb inflation. The reaction to Trump's comments has been subdued in the market, with the dollar weakening and little impact on major US stock indexes.

According to the source: Sky News.