Trump Accuses Fed Chair Powell of Political Motives with Interest Rate Cuts

Donald Trump has slammed the current Fed Chair, Jay Powell, for alleged “political” reasons for potentially cutting interest rates despite nominating him in 2017.

Trump Targets Powell

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Donald Trump intensified his criticism of Federal Reserve Chair Jay Powell, accusing him of being “political.”

Political Accusations

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Trump accused Powell of planning to cut interest rates to benefit Democrats, expressing his desire to “replace” him.

Potential Conflict Ahead

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With Trump as the frontrunner for the Republican presidential nomination, potential conflicts between the Fed and the White House loom if he becomes president again.

Powell’s Actions Scrutinized

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Trump questioned Powell’s motives, suggesting that lowering interest rates might be an attempt to influence elections.

Trump’s Accusations

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“I think he’s going to do something to probably help the Democrats,” Trump said in an interview.

Throwing Skepticism About Fed Chair

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“It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know,” the former President continued,

Trump’s Replacements in Mind

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When it came to replacing the Fed Chair if he were elected, Trump admitted he had “a couple of choices.”

Fed’s Efforts Against Inflation

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Over the past two years, the Fed raised the benchmark interest rate to fight inflation, signaling a possible rate reduction later in 2024.

Delayed Interest Cuts

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Powell made the decision to delay interest rate cuts until March after the month of January saw a record high number of jobs being created in the U.S., with 353,000 jobs added.

Powell’s Fed Independence

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Despite Trump nominating Powell in 2018, the former president challenged the Fed’s independence, particularly during the U.S.-China and U.S.-Europe trade wars.

Trump’s Original Nomination

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Trump’s verbal attacks come seven years after he nominated Powell as chair in 2017 before Biden reappointed him in 2021.

Powell Responds

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After the recent Federal Open Market Committee meeting, Powell downplayed the possibility of a third term and said, “I don’t have a stance on that.”

Focusing on the Job at Hand

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Powell asserted that 2024 is a highly consequential year for the Fed and for monetary policy, and we’re all of us very buckled down, focused on doing our jobs.”

Trump’s Inflation Woes

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Trump recently suggested that he was hoping for an economic crash so that Biden would lose the confidence of the public.

Hoping for a Crash

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“When there’s a crash, I hope it’s going to be during this next 12 months because I don’t want a Herbert Hoover,” Trump admitted.

Trump’s Critique Expands

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Trump also blamed Powell for missing the inflation surge and predicted challenges due to the Middle East conflict.

Warning on Inflation

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Trump warned of inflation, “You’re going to have big inflation. He’s not going to be able to do anything,” Trump said.

Eswar Prasad’s Concerns

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Eswar Prasad, a Cornell University professor, saw Trump’s remarks as alarming threats to the Fed’s independence.

“Extremely Worrying Threats”

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Prasad said the comments were “extremely worrying threats made by Republican candidates to the independence of the Fed.”

Future of Elections

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With the Presidential elections just around the corner, it seems like Trump is focusing on making President Biden look bad instead of trying to improve the economy.

The post Trump Accuses Fed Chair Powell of Political Motives with Interest Rate Cuts first appeared on Swift Feed.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

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