US President Donald Trump renewed his critical campaign against the President of the Federal Reserve Jerome Powell, after a truce that did not last more than a week, as he stated in a mass crowd in Detroit, saying: “I know about interest rates much more than it,” adding that Powell “does not do a good job,” according to Bloomberg.
Monetary policy under fire
Trump’s comments came at a sensitive time, as they coincide with the issuance of the gross domestic product data for the first quarter of this year, which is expected to reflect the impact of its economic and customs policies. Trump has previously expressed his annoyance at the federal slowdown in reducing interest rates, considering that the cash tightening stands a stumbling block in the face of the recovery of the American economy.
These criticisms come in light of the escalation of anxiety between investors about the lack of clarity in the White House and the central bank, which adds more tension to the market climate.
Customs policy controversial
In addition to his attack on Powell, Trump defended his economic program, especially customs duties policies, which he said aimed at “reviving local industrialization” and pushing companies to return to US soil.
However, the Bloomberg report indicated that “the expected data may reveal an economic decline due to the high costs of imports,” which puts Trump’s economic policies in front of a realistic test.
It is noteworthy that these statements bring back to mind the open conflict that characterized the relationship between Trump and Powell during the first period of Trump, as he has repeatedly hinted at the possibility of dismissing the head of the federal reserve, before he retracted it under legal and institutional pressures.
Political and economic tension is increasing
At the end of his gathering, Trump hinted that his battle with the federal is “not a person”, but it is part of his most comprehensive vision to restructure the American economy, amid a decrease in his popularity according to recent opinion polls, which showed a satisfaction rate not exceeding 39%, according to a survey conducted by ABC News and the Washington Post.
It is noteworthy that the financial markets were already affected by this speech, as the futures contracts for the Nasdaq index recorded a decrease of 0.45%, and the Standard & Poor’s 500 index fell by 0.26%, while the Bloomberg index for the dollar increased by 0.05%.
