US President Donald Trump expressed dissatisfaction with the Federal Reserve's performance, calling for the removal of Chair Jerome Powell after his refusal to lower interest rates.
Trump on Fed and Jerome Powell
Trump made his statements on his Truth Social account, labeling Powell a 'stubborn MORON' and stating that the board should 'take control' and 'do what everyone knows has to be done.'
Divisions within the Fed regarding Rates
At the Fed meeting, 9 out of 11 members voted to hold rates steady, prompting Trump's dissatisfaction. Two board members dissented, marking the first public disagreement in over 30 years.
Economic Data Raises Concerns among Economists
The US Labor Department released July employment data, showing only a 73,000 job increase, well below expectations. The unemployment rate ticked up to 4.2%, mirroring concerns of some Fed members about economic conditions.
The dynamics of the Fed's actions and differing opinions on necessary measures raise questions about the future economic trajectory in the country. The varying positions within the Fed highlight existing tensions and uncertainties in monetary policy approaches.
