President Trump lobbies ‘Too Late’ Jerome Powell to cut interest rates

On Tuesday, president Donald Trump has criticized the Federal Reserve leadership for not reducing interest rates amid her fears about inflation, which is still above the target scope of the Central Bank.

Trump criticized Federal Reserve Chairman Jerome Powell in a social publication of the truth, arguing that he was behind the curve in reducing interest rates compared to their peers in America.

“There is no enlargement, gasoline prices, energy, grocery stores, and everything else practically, the Federal Reserve should reduce the average, as did Europe and China,” Trump wrote on the truth platform. “What is wrong with it too late? It is not fair to America, and it is ready for flower?

Trump pressed Powell and full moon on a larger scale to reduce interest rates to increase the economy and may compensate for the high prices caused by customs tariffs on imported goods. However, the Federal Reserve indicated that it is awaiting the reduction in interest rates so that there are signs of inflation to the goal of 2 % or weakening the labor market.

Goldman Sachs says that under the independence of the central bank has economic repercussions

The Central Bank has retained the rate of federal funds fixed in the range of 4.25 % to 4.5 % in its last three meetings.

Trump’s comments followed the issuance of the work statistics office for the consumer price index in April (CPI), the inflation scale that showed that the total prices increased by 2.3 % from last year, while the basic prices that exclude more volatile energy and food prices increased by 2.8 % on an annual basis.

The Federal Reserve holds a fixed major interest rate amid economic uncertainty

The other inflation scale preferred by the Federal Reserve, the Personal Consumption Expenditure Index, rose 2.3 % from last year during the month of March.

Economists have warned that Trump’s tariff, which is located on imported goods, is likely to cause consumer prices in the coming months, which may cause inflation to return and delay the FBI plans to reduce prices. This is because the definitions paid by American importers, who usually pass most of their high costs of definitions on consumers through high prices.

Trump appointed Powell as head of the Federal Reserve lectures during his first presidential term. (Saul Lub / AFP via / Getty Images)

Trump had previously threatened to dismiss Powell, although there was uncertainty about his legal ability to do so, and he has since said he would not try to remove him from the central bank. The Federal Reserve is an independent federal agency, and the current law prohibits the removal of the president except for the cause.

Goldman Sachs recently released a report that found, “Economists agree on a large scale that the most independent political banks are more able to balance their goals of maintaining low and stable prices while maintaining economic production near the full capabilities.”

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The analysis found that the decrease in the independence of central banks such as the federal reserve can lead to high inflation, low stock prices and the weakest currency.