Trump attacks Fed boss Powell: Lower key interest rates immediately!

Trump attacks Fed boss Powell: Lower key interest rates immediately!

In a new argument, US President Donald Trump sharply criticized the chairman of the US Federal Reserve, Jerome Powell. Trump described Powell as a "loose" and called for an immediate reduction in key interest rates to support economic growth. He warned that the growth would be slowed down inevitably without rapid measures. Powell, who was nominated by Trump as Fed boss in 2018, came across the president's displeasure, who missed the nickname "Mr. Too Late". This argument harbors political implications, since Trump threatened to dismiss Powell, which is considered an extremely unusual step.

according to vienna.at Powell previously pointed out that Trump's tariffs could lead to various trading partners at higher prices and ultimately to a lower economic growth. Despite these warnings, Powell currently considers a key interest rate to be premature. In the current situation, the US control interest rates have been stable at 4.25 to 4.50 percent since December 2024.

market analysis and forecasts

The reactions of the US exchanges on Trump's threats are already noticeable. The Dow Jones and the S&P 500 temporarily recorded price losses of over two percent. This development shows how much political announcements can affect the market. The investors thus react sensitively to the uncertainties that Trump's statements bring.

In addition, [ftd.de] (https://www.ftd.de/wirtschaft-und-politik/fed-leitzinsaktuell-zins-in-s-usa- and-neue-zins-prognose-2025/). In the second half of last year, the FED reduced the interest three times by a total of 100 basis points. The unemployment rate remains stable and the job market is robust. However, inflation has increased slightly and the uncertainties about the economic perspectives have grown.

inflation and consumer psychology

Core inflation that excludes food and energy was 3.3 percent in January 2025 and fell to 3.1 percent in February. Both services and the general economic situation represent significant challenges. Analysts have reduced their growth forecasts, which causes concern about a possible recession.

The appointment markets appreciate the likelihood of interest reductions by 0.75 percent by the end of 2025 to 60 percent. In addition, a probability of 18.2 percent is expected for the interest session on May 7 and 60.5 percent for the Juni session for interest in interest. These figures illustrate the market analyzes, which consider a possible adaptation of the Fed's monetary policy in response to current economic uncertainty.

The uncertainties and inflation expectations have already negatively influenced consumer confidence. Against the background of this complex economic situation, it remains to be seen how Trump and Powell will react to the challenges in the coming weeks and months.

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OrtVienna, Österreich
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