Following the Federal Reserve's decision to hold interest rates steady for the fifth time, political pressure builds from both the administration and critics.
Trump Slams Powell Again
President Trump has again expressed dissatisfaction with Fed Chair Jerome Powell, urging immediate rate cuts. In a social media post, he referred to Powell as a 'stubborn moron' and accused him of being slow to respond to economic challenges.
A Test for the Fed
While Trump has significant influence, he cannot fire Powell directly. However, he can affect the Fed's Board of Governors' composition through Senate-approved appointments. Experts note that the board could override Powell’s decisions with a majority vote during FOMC meetings.
Calls for Fed Rate Cuts Grow
Experts like Anthony Pompliano have called the Fed's decision to keep rates high a 'big mistake.' With the economy booming, he argues that lower rates would benefit all Americans and predicts cuts could occur before year-end, despite inflation rates complicating the scenario.
The political pressure on the Federal Reserve and the ongoing criticism from the U.S. President create a tense atmosphere regarding its future actions. While economic forecasts remain positive, the necessity for rate cuts continues to be a topic of discussion.
