US Federal Reserve Chairman Jerome Powell seemed to have subtly struck President Trump in a speech Tuesday in New York to isolate the Fed that way, because she saw the damage that often occurs when Politics turns to short-term political interests, "Powell said during a speech to the Council on Foreign Relations. "Central banks in major democracies around the world have similar independence."
Powell's speech follows the Federal Open Market Committee's two-day meeting last week, during which Trump called on the Fed to cut interest rates. However, policymakers voted 1: 9 to keep federal interest rates steady at 2.25 to 2.5 percent, although this could be strongly hinted at this year.
The President went to Twitter on Monday to reiterate his disappointment with the US Federal Reserve and Powell, which he reportedly wanted to dismiss (in an interview with The Hill claimed Trump claims that he has the authority to dismiss Powell but said he "has no plans to do anything."
"We are well on the way to having one of the best months in June in US history. Think about what it might have been if the Fed had done it right, "Trump wrote." Thousands of points higher on the Dow and GDP in the 4s or even 5. Now they remain like a stubborn kid when we cut interest rates and Relaxation is needed to make up for what other countries are doing against us Blow it! "
However, Powell emphasized in his speech the importance of an independent central bank, which paid close attention to signals from the Fed at its meeting in the Ju li possibly lowered.
Powell, however, did not give any additional indication A Federal Reserve rate cut is imminent in the next six weeks, though he said that the risks to the US Federal Reserve's economic prospects have increased. Advances in trade are becoming more uncertain, and the incoming ones Data give rise to renewed concern about the strength of the global economy, "he said. "Our contacts in business and agriculture have increased the concern about trade development."