Trump escalates pressure on Fed Chair Powell, urging deep rate cuts amid tariff‑driven inflation fears.
On July 16, former President Trump turned up the heat on Federal Reserve Chair Jerome Powell, calling for “extreme” interest‑rate cuts. His comments come as rising inflation, partially spurred by the administration’s tariff measures, clouds the economic outlook.
Despite Powell’s cautious stance, Trump argues the Fed should rapidly loosen policy to cushion consumers and businesses against a tariff‑driven price surge. But this intervention has rattled markets wary of politically‑motivated central bank interference.
Analysts note the Federal funds rate currently sits at 4.25–4.50%, with softening labour data suggesting a slowdown may be approaching . Critics warn that hasty rate cuts could reignite inflation or undermine Fed independence.
True independence remains critical, especially as long‑term Treasuries climb amid fears of sustained inflation . For now, Powell faces pressure from both markets and politicians.
I'm Adedayo Obadina
Talksocialtalks