Reference News Network, July 24 report - According to Reuters, on July 22, US President Donald Trump said at a press conference that Federal Reserve Chair Jerome Powell is a "fool" who keeps interest rates too high, but he will be gone in eight months.
He said during a meeting at the White House with Philippine President Marcos: "I think he's not doing a good job, but at least he will be leaving soon. He will be gone in eight months."
Powell's term ends on May 15, 2026, and he has repeatedly stated he will not resign early. Eight months from now would be around mid-March next year, and it is unclear why Trump chose this time frame.
For months, Trump has criticized Powell for not cutting interest rates, and has repeatedly suggested the possibility of removing him, but also said it is "unlikely" to fire him.
On the 22nd, Trump reiterated his view that the policy rate should be three percentage points lower than it is now.
The Federal Reserve's Open Market Committee will hold a meeting next week, and it is almost universally expected that the policy rate will remain in the current range of 4.25% to 4.50%, with policymakers watching the impact of inflation and employment on tariffs.
"Our economy is very strong and unstoppable. We are setting records," Trump said. "But you know what? People can't afford houses because this guy is a fool. He's keeping the rates too high, and it's probably for political reasons."
According to AFP, on July 22, US Treasury Secretary Scott Bessen said he believes Federal Reserve Chair Jerome Powell has no reason to resign immediately. The day before, Bessen had called for a comprehensive review of the Federal Reserve.
Bessen made these remarks during an interview with Fox Business News. At present, Powell is facing increasing pressure from the Trump administration to cut interest rates. Trump recently intensified his criticism of the independent central bank governor over a $25 billion reform project by the Fed.
"There is no indication that he should step down now," Bessen said when talking about Powell.
He pointed out that Powell's term as chair of the Federal Reserve ends in May 2026, and if Powell is willing, he should complete his term.
However, Bessen also said that if the Federal Reserve chair wants to leave early, he should do so.
Late on the 21st, Bessen posted on social media calling for a "thorough internal review" of the Fed's "non-monetary policy operations" and accusing the Fed of deviating from its mission.
Bessen said on X platform that the "independence of the Fed is the cornerstone of sustained economic growth and stability in the United States."
He said, "However, this autonomy is under threat from its continued deviation from its core mission." But he did not specify which policy areas.
Translation/ Wang Diqing
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