Trump wants Powell to slash the interest rate by one percent, reportedly.
US President Donald Trump has slammed Federal Reserve Chair Jerome Powell for his refusal to reduce interest rates.
Calling him a “knucklehead,” Trump stated that inflation does not possess any concern for the American economy. He added that Powell should lower the interest rates by one percent.
“He’s a knucklehead. Stupid guy. He really is,” Trump was quoted as saying by the local media reports.
Trump has criticized Powell multiple times earlier as well, and experts see this as an effort by the American president to bring the central bank and monetary policy under his own control.
However, Powell has repeatedly said that it is not the correct time to reduce interest rates, citing changing tariff policy by Trump.
Trump had said that he will impose a sanction on the European Union and Mexico, which will be thirty percent, from August 1.
He also threatened other countries with tariffs if they fail to sign trade agreements with the US.
Experts have suggested that Trump might replace Powell because of the accusations of extraordinarily high expenses involved in renovating the Fed office.
The renovation was expected to be completed for USD 1.9 billion but surged dramatically to USD 2.5 billion.
However, Powell dismissed the complaints and said that news about new additions like VIP dining rooms and marble in the building is “misleading.”
But planning papers from the year 2021 reportedly revealed that these new designs were approved.
After these reports, the US government under Donald Trump criticized Powell for “gross mismanagement.”
Russ Vought, the budget chief, accused him of keeping the Congress in the dark over the cost of renovation.
A letter by Vought says that President Trump is “troubled” at the reports and seeks a reply from Powell in a “week.”
Moreover, Trump has changed three officials who were overseeing the development inside the Fed’s building.
However, if Powell resigns over the accusations, top candidates to replace him would be Trump’s economic advisor Kevin Hassett or Scott Bessent, the treasury, reports said.
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