President Donald Trump took to Truth Social to deliver a sharp critique of the Federal Reserve and its Chair, Jerome Powell. This criticism emerged following the Federal Reserve's decision to maintain a key interest rate at its current level. Trump accused the Fed of not addressing the inflation problem, which he claims they initiated. Furthermore, he criticized the institution for performing poorly in regulating banks. Trump also voiced his belief that the President should have significant input in determining interest rates, challenging the long-standing tradition of Federal Reserve independence.
"failed to stop the problem they created with Inflation"
— President Donald Trump
In 2018, Trump appointed Powell as Fed Chair, but over time, his approval of Powell diminished. Powell has consistently emphasized the necessity of central bank independence from external influences. Newly confirmed Treasury Secretary Scott Bessent reiterated this view, supporting Powell's stance on maintaining independence. Despite this, Trump announced his intention not to reappoint Powell when his current term concludes in 2026. Instead, Trump proposed that he would take measures to reduce costs by cutting regulations and revitalizing American manufacturing.
Trump outlined his vision for economic change, which includes unleashing lending opportunities for all Americans and businesses. He suggested that the Treasury Department under Bessent would spearhead efforts to eliminate unnecessary regulations.
"lead the effort to cut unnecessary Regulation"
— President Donald Trump
Beyond these economic proposals, Trump criticized the Federal Reserve's focus on progressive goals such as climate change and diversity, equity, and inclusion initiatives. This reaction to the Fed's interest rate decision came just days after he publicly demanded an immediate reduction in interest rates.
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