President Donald Trump criticized Federal Reserve Chair Jerome Powell, expressing frustration over the central bank’s reluctance to aggressively cut interest rates. Trump hinted at the possibility of firing Powell, despite his term not expiring until next year. This comes after Powell indicated that the Fed would keep interest rates unchanged to assess the impacts of policy changes in areas such as immigration and tariffs, leading to a drop in stock prices.
Trump’s aggressive tariffs have raised concerns about a potential recession, with higher inflation and slower growth. Powell, however, reiterated the Fed’s commitment to making decisions in the best interest of all Americans, regardless of political pressure. The president’s actions have put the U.S. economy and the Fed in a precarious position, with fears of stagflation and increased inflationary pressures due to tariffs. Financial analysts have raised concerns about the potential economic impact of these policies on American households.AP journalists Sagar Meghani and Christopher Rugaber contributed reporting.
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