President Donald Trump and Fed Chair Jerome Powell have seemingly different views as to what’s best for the U.S. economy.
Trump hit TRUTH Social to call for interest rates cuts. Powell, during a speech delivered before business journalists in Arlington, said the Fed faces a “highly uncertain outlook” because of the new reciprocal levies the president announced Wednesday.
Trump posted the following message to the Fed Chair:
This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always “late,” but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!
Shortly after Trump’s post, Powell said in prepared remarks, “Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem. We are well-positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy.”
“While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,” Powell added. “Avoiding that outcome would depend on keeping longer-term inflation expectations well anchored, on the size of the effects, and on how long it takes for them to pass through fully to prices.”
Powell wouldn’t comment on Trump’s remarks.
“I make it a practice not to respond to any elected officials’ comments, so I don’t want to be seen to be doing that. It’s just not appropriate for me,” Powell said at the onset of a question-and-answer session following his speech.
The Dow Industrial was down nearly 4.00% on Friday.
