US President Donald Trump has stated that he may be forced to change interest rates if his trade demands are not met by Federal Reserve Chairman Jerome Powell. The comment was made during a speech, where Trump targeted Powell and the Fed’s monetary policy, saying it was “not working” for him.
Trump has been critical of the Fed’s decision to keep interest rates steady despite rising inflation, which he believes is due to his policies. He has also threatened to impose tariffs on foreign goods if Powell does not meet his demands.
The Fed has maintained its stance on monetary policy, citing a need to balance economic growth with inflation concerns. However, Trump’s comments have raised concerns about the potential for the Fed to be pressured into making changes that may benefit the president and his allies.
The situation highlights the ongoing tensions between the executive branch and the central bank, with both sides engaged in a battle of wills over monetary policy and its impact on the economy.
Source: https://www.ft.com/content/87a2c699-be5b-4a3b-9ae1-db3e997633af