Trump Criticizes Powell, Says His Term "Won't Be Long"
US President Donald Trump again sharply criticized Federal Reserve Chairman Jerome Powell, saying that Powell's term "won't be long." In a press conference at the White House, Trump expressed his dissatisfaction with Powell's persistently high interest rate policy. He even called Powell a "numbskull" and implied that his Fed leadership might soon end, even though Powell's legal term ends in May 2026.
Trump also highlighted the impact of high interest rates on housing costs and the difficulty of homeowners. He repeatedly emphasized that interest rates should be lowered aggressively, at least three percentage points lower. His comments came as the White House put pressure on the Fed to further support economic growth ahead of the upcoming election.
However, US Treasury Secretary Scott Bessent played down speculation about Powell's dismissal. In an interview, Bessent stated there was no reason for Powell to step down before his term ends. However, he still recommended a review of the Fed's role and activities, including the potential expansion of its mandate beyond core monetary policy.
Trump's statement has heightened tensions between the executive branch and the central bank, which has historically maintained its independence from political interference. Market participants and investors are now closely monitoring the potential impact of this tension on future interest rate policy and the stability of the US economy as a whole. (ayu)
Source: Newsmaker.id
