Trump-Powell interest rate standoff intensifies as new economic data shows robust consumer spending

Amid an increasing confrontation between the president Donald Trump The President of the Federal Reserve, Jerome Powell, highlights a favorable economic report card as a justification for reducing interest rates.

The data collected by the Economic House of Economists in the White House for the first six months of 2025 shows strong spending for consumers, stable job growth and regaining industrial production.

The report of the new council for economic advisors finds that definitions do not cause inflation

At the heart of the conflict, there is a hesitation of Powell in low interest rates-a stance rooted in the cautious and data-based approach in the Federal Reserve to Manage inflation and economic growth.

The next opportunity to reduce the federal reserve to reduce prices during the 29th to 30 July meeting.

The Economic policy to wait and see Powell has kept the main borrowing rate of the central bank in the range of 4.25 % to 4.5 %.

Meanwhile, Trump has called on the Federal Reserve to reduce prices to 1 %, noting a strong labor market and cooling in inflation rates.

A look at the battle that reveals between Trump and Powell on the federal reserve policy

On the Labor Front, American employers defeated estimates and added 147,000 jobs in June. What’s more Unemployment It fell to 4.1 %, according to the data collected by the Ministry of Labor.

The Economic House of Economists also stated that between January and June, manufacturing production increased by 1.8 %, reflecting a 0.7 % decrease in the five months before Trump’s inauguration.

Trump’s higher economic advisers also indicate 0.6 % rush sales in June, higher than 0.1 %.

Job growth was chosen in June, despite economic uncertainty

Powell stopped lowering rates, partly, to evaluate Economic impact From Trump’s tariff.

So far in July, Trump has announced plans to impose a 30 % tariff on imports from Mexico and all 27 countries that make up European Union.

Shipping containers are organized in the body of Houston Port on February 10, 2025, in Texas. (Brandon Bell / Getti Emaiz)

These definitions come in the wake of a 50 % tax on imports and copper products from Brazil, which is a 35 % tariff on Canadian goods and other customs tariffs imposed on more than 20 countries.

Advertiser Definitions It is scheduled to enter at the end of July.

Trump’s revenues have achieved the standard improvised tariff, as it has generated $ 100 billion so far this year

So far in 2025, customs tariff revenues amounted to 128.9 billion dollars, according to the latest numbers of the Treasury.

In June alone, the United States received more than $ 27 billion in customs duties, the highest number so far in 2025.

At the beginning of Trump’s second term, the customs tariff revenues were hoping for about $ 7.9 billion and more than twice in April to $ 16.3 billion.

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In addition, the main stock indicators-including the S&P 500, NASDAQ and Dow Jones-have approached record levels, ignored trade uncertainty and challenged continuous concerns about geopolitical tensions and tariff risks.