US President Donald Trump called for a reduction in the main interest, pressing the Federal Reserve (US Central Bank), with a progress in the application of the economic agenda for its second mandate, especially the imposition of customs duties on all American imports and the extension of tax exemptions.
Trump said yesterday evening through his social network, “Truth Social”: The rate must be reduced, and this is something that should be in line with the upcoming customs tariffs!
He blamed his democratic predecessor, Joe Biden, and wrote in a post on his platform, “Raise Biden inflation.”
Bloomberg News Agency reported that Trump’s statement came one day after the testimony of the President of the US Central Bank, Jerome Powell, before the Senate Banking Committee, followed by another certificate for Powell yesterday before the House of Representatives.
Trump kept the inflation report issued yesterday with these statements, and the prices of consumers increased during last January to 3% annually compared to 2.9% during the previous month and by 0.5% per month.
In his testimony before the Senate Banking Committee the day before yesterday, Powell said that the Reserve Council is preparing to maintain the current interest rates in light of the continued high inflation and the strong job market, adding that after the interest reduced 1% during the last three months of the fiscal year and with “the continuation of the economy strongly We do not need to hurry to amend our critical position. “
Powell reply
The President of the US Central Bank also responded to Trump’s statements in his testimony before the Financial Services Committee in the House of Representatives by saying that the US President’s calls to reduce interest will not push the parliament to change his decisions on monetary policy.
“The people can trust that we will continue to focus on our work and make our decisions based on what is happening in the economy,” he added.
Powell had indicated, during a press conference last month, that the US Central after reducing the main interest rate 3 times in late last year would refrain from more cuts pending evidence that inflation is approaching the target level, which is 2%.
Many reserve council officials want to wait and see how Trump’s policies – including the definitions he suggested and those approved by the economy, affect the economy, and most economists fear that customs tariffs will lead to at least an increase in inflation.
