Trump attacked Federal Reserve Chairman Powell's refusal to cut interest rates, saying that firing him as soon as possible would be better.

The Federal Reserve is an independent and neutral institution separate from the government, but Trump has frequently threatened to remove Chairman Powell from office. Is it possible?

On Thursday morning, April 17, President Trump once again made fierce comments on his social platform "Truth Social," directly pointing out that Powell's unwillingness to cut interest rates was "too late and wrong," and publicly stated: "The sooner Powell is removed from office, the better."

In the post, Trump wrote: "The European Central Bank has cut interest rates for the seventh consecutive time, which is 'too late,' yet Powell remains inactive. The report he released yesterday was just another typical chaotic speech." He emphasized that oil prices are falling, food prices are declining, including egg prices, and the U.S. is becoming wealthier through tariffs; therefore, "this is the perfect time to cut interest rates."

He further pointed out: "Powell should have followed the European Central Bank's approach to cut interest rates earlier, but at least he should do so immediately now. This person is always too late and wrong. Removing him as soon as possible would be better!"

This statement by Trump came at a time when the European Central Bank (ECB) announced its seventh interest rate cut. In contrast, the Federal Reserve currently maintains its benchmark interest rate at 4.25%-4.50%, without any adjustment since last December, reflecting the institution's cautious stance on the current economic situation.

This statement starkly contrasts with Powell's speech the day before at the Economic Club of Chicago. Powell clearly stated in the meeting that the Federal Reserve will continue to maintain policy independence and adhere to its dual mandate granted by Congress to promote maximum employment and price stability. He noted that "the independence of the Federal Reserve is widely understood and supported by the White House and Congress."

Powell warned that the return of the Trump administration brought about "very fundamental policy changes," including "comprehensive tariffs far exceeding expectations." He stated that these changes were unprecedented in modern history, placing the Federal Reserve in uncharted territory and facing the risk of stagflation.

In his speech, Powell stated: "Tariffs are likely to cause a rise in inflation in the short term, and these effects may persist, depending on the speed and breadth of price reactions." He admitted that the Federal Reserve currently finds it difficult to make a clear response regarding its policy direction: "We need more economic information to understand how uncertainty will evolve over the next few months."

John Williams, president of the New York Fed, also stated in an interview on the same day that there is no immediate need to adjust interest rates. He said: "We are in a year where inflation is high and growth is slowing down, which requires careful consideration."

The Federal Reserve is independent of the U.S. government, and the White House usually does not publicly lobby the Federal Reserve, but after Trump took office, he constantly pressured Powell to lower U.S. interest rates and even openly threatened to "remove Powell's hat."

Powell was first appointed by Trump in 2018 and later reappointed by the Biden administration in 2021, with his current term lasting until May 2026. During the pandemic in 2020, Trump criticized Powell for making many "wrong decisions" and threatened to fire him.

In March this year, Trump dismissed two Democratic members of the independent Federal Trade Commission, stating that their continued service on the commission was "not consistent with the priorities of my administration."

Meanwhile, the Supreme Court is hearing the case "Trump v. Wilcox," which could become a game-changing precedent. This case challenges whether the president has the authority to dismiss the heads of independent agencies, and if such authority is granted, it could impact the future personnel arrangements of the Federal Reserve.

According to the request of Chief Justice Roberts of the Supreme Court, both parties submitted written defenses last week. Last week, the U.S. Court of Appeals for the D.C. Circuit ruled that the government must reinstate Harris of the Merit Systems Protection Board and Wilcox of the National Labor Relations Board, after which the case was submitted to the Supreme Court.

The case is currently awaiting review by the Supreme Court.

Source: rfi

Original article: https://www.toutiao.com/article/1829664601888780/

Disclaimer: This article represents the author's personal views only.