Donald Trump has renewed his criticism of Federal Reserve Chairman Jerome Powell, claiming that the current interest rates are too high and harming the US economy.
Trump's Criticism of the Fed
Today, President Donald Trump criticized Fed Chair Jerome Powell again, claiming that interest rates are too high. According to Trump, the current rate is at least 3 points too high. He stated on his Truth Social account that 'Too Late' is costing the US $360 billion a point per year in refinancing costs.
Trump's Options to Lower Rates
If Powell continues to maintain the rates, Trump may have to wait until his term ends in early 2026. However, Trump could also call for Powell to resign, although this is complicated by legal restrictions that only allow the president to fire the Fed chair for specific misconduct.
Potential Market Consequences
Trump's call for lower interest rates could lead to increased volatility in the stock market, especially among financial institutions such as Bank of America and JPMorgan Chase. Lowering rates could stimulate lending and economic activity, but it may also pressure banks' net interest margins, impacting their stock performance.
In summary, Trump's actions towards the Fed and his calls for rate reductions could significantly affect the economic situation and financial markets in the US.
