Trump threatens legal action against Powell over Fed HQ, demands immediate rate cuts as inflation holds steady
President Donald Trump escalated his campaign against Federal Reserve Chairman Jerome Powell about one hour after the latest version of inflation data, and publicly threatened to prosecute him about renewing the headquarters of the Central Bank and repeated his call for immediate interest rate discounts. The confrontation comes at a time when the consumer price index report showed us inflation in July was more moderate than expected, which led to the political pressure on the central bank to reduce monetary policy. The complexity of matters for the Federal Reserve is “basic” inflation, with the exception of flying food and energy prices, was the highest in five months.
On social media on Friday, Trump returned to his sharp criticism of the Federal Reserve Chair. “Jerome” is too late, “Powell now must reduce the rate,” he wrote on the social truth. Then Trump turned to the subject of his legal threat: Powell’s supervision of the renewal of the Federal Reserve, which is valued at $ 2.5 billion from its headquarters in Washington. Trump has repeatedly condemned the project, indicating that he is up to “fraud” and is an unnecessary luxury.
“I think it is terrible … but there is one thing that I have not seen is a man who needs to be shortened to live,” Trump said in a recent interview, which means a luxurious spending at the expense of taxpayers. In July, Russell, the head of the White House budget, accused Powell of deception due to the costs of renewal, followed by Treasury Secretary Scott Bessin, who confirms that the selection process is under implementation of Powell.
Although legal experts are widely agreed that the president cannot shoot directly on the Federal Reserve Chairman due to policy disputes, Trump suggested that cost excesses can be reasons for rejection or lawsuit, “for the reason.” In May, the Supreme Court indicated that Powell was removed for political reasons under the current law. The reason is that Trump wants Powell to reduce interest rates has nothing to do with the renewal of offices – it relates to many anxious signs of economy.
Steeling pressure for low interest rates
Trump’s attacks on Powell are fed up to reject the Federal Reserve to significantly reduce the standard interest rate, which remains by 4.25 % to 440 % after a series of increases in 2022 and 2023. Powell and Badr have argued that maintaining higher rates is necessary to maintain continuous inflation in selection, especially as the effects of Trump and global trade breakdown, it is still necessary to analyze. CPI report on Tuesday is mysterious and can be read in both cases.
The inflation report in July showed a significant increase in a smaller rise than expected in consumer prices, which sparked Trump’s encouragement to double his calls.
“The damage [Powell] “Fortunately, the economy is so good that we explode through Powell and the Satisfaction Council.”
Trump has argued that higher rates suffocate growth and harm American home owners and companies and demand significant discounts at rates of 3 percentage points – economists warn against risk of release new inflation if ill -treatment.
Trump’s economy seems weaker than expected after the job report in July included massive revisions in the previous months, revealing the economy while creating job opportunities in poverty less than 20,000 in May and June. This has prompted many Wall Street analysts to review their opinions about the effect of the Trump tariff system on the economy, and whether the economy is a fate of a mixture of high inflation and low growth, correction of the stock market, or even stagnation.
Several members of the Federal Reserve, including some appointed by Trump (and floating him as Powell’s potential caliphs) publicly opposed Powell’s position, and called for more aggressive discounts in prices to mix cash motivation with the President’s expansion and financial policies. But Powell remained cautious, stressing the need for a “accurate approach while monitoring inflation trends”, and highlighting the risks associated with Trump’s business schedule.
Political and economic repercussions
The dispute sparked widespread concern about the independence of the US Central Bank. The markets showed fluctuations as rumors of the possible launch of Powell, or that the council was controlled, was distributed in Washington. Wall Street leaders have warned economists politicization of the federal reserve policy of undermining global confidence in US economic administration and leading to long -term instability.
Trump’s speech, including summoning names and accusations of mismanagement, has fueled fears that the exact balance between elected officials and non -partisan central bankers are at risk. Despite friction, Powell pointed out his intention to serve until his term ended in May 2026, as he was originally appointed.
For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.
2025-08-12 15:01:00
