White House press secretary Karolin Lewit said during a press briefing on Monday that President Donald Trump sent a letter to Fed Chair Jerome Powell, which shows low interest rates in other countries.
Federal reserve chair Zerome poly On Tuesday, it has been said that the central bank has cut interest rates due to concerns about tariff-inspired price hike on consumers, saying that the fed probability will be cut this year if those tariffs are not for concerns.
Powell participated in a panel discussion about monetary policy at the European Central Bank Forum in Portugal, with leaders of other major central banks including the European Union, United Kingdom, Japan and South Korea.
Powell was asked if Fed would have cut interest rates by now, if it was not for tariff spring Inflation worry,
“I think that’s right,” said Powell. “In fact, when we looked at the size of the tariff, we went into the grip and where the forecast of all inflation for the United States essentially went up physically as a result of tariff.”
Fed Chair Jerome Powell said that high inflation forecasts after tariff declarations caused a break on rate cuts. (Photographer: Al Drago / Bloomberg Getty Embolce / Getty Image)
“So we didn’t overcome. In fact, we didn’t react at all. We are just taking some time – as long as the American economy is in solid shape, we think the prudent thing is to wait and learn more and see what those effects can be. And then, they are not really shown, and now we are waiting.”
Earlier in conversation, Powell stated that the US economy is in “very good condition” with inflation being close to 2% of the target in recent years, while the unemployment rate at 4.2% is a sign of a healthy labor market.
“Ignore tariffs for each other – inflation is behaving too much as we have expected and expected it,” Powell said.
Dollar Slide at a 3 -year -low report Trump plans to name the next Fed chair quickly.
President Trump has repeatedly criticized Fed Chair Powell. (Getty Image / Photo Illustration / Getty Image)
Powell said that Fed hopes that there will be high inflation readings in this summer later Tariff cost Make your way through the supply chains, although he said that policy makers would monitor whether they are more or less than the effects.
Powell said, “We have not yet seen the impact from the tariff, and we did not expect yet.” “We have always said that the time, amount and perseverance of inflation will be highly uncertain and it has certainly proved.”
“So we are seeing, we hope to see some readings, high readings in summer. But we are ready to know whether it may be high or low or later or as soon as we will be required,” he said.
chairman Donald Trump Pavel has repeatedly criticized his demands for repeatedly that the central bank has reduced low interest rates to increase greater economic activity, “Mr. to Late” and insulting his intelligence, called him “average mentally”, what he does “has” what he does. ”
Trump nominated Powell as a Fed Chair in 2017, and his criticism of conducting Pavel’s monetary policy returned in the first term of the President.
Trump Blast Powell, says that any replacement would be better to refinance the $ 9t loan
President Trump appointed Jerome Powell as a fed chair in 2017. (Through Saul Loaib / AFP Getty Image / Getty Image)
The President sent a note to Powell on Monday, stating that the central bank has “cost the USA a fortune” to not cut interest rates.
Trump wrote in the note, “You should be very low at the rate. Hundreds of billions of dollars are losing and no inflation,” Trump wrote in the note, which was read by the White House press secretary Karolin Lewit during a press briefing.
Lewit stated that Trump sent a chart to Powell, which shows all countries in the world with a lower benchmark interest rate targets than the Fed.
Get Fox Business when you click here
Fed Each of its four meetings in 2025 has left its benchmark Federal Fund rate on the target range of 4.25% to 4.5%. Its next meeting is scheduled in late July.
