Washington: US President Donald Trump on Thursday sharply attacked Federal Reserve Chair Jerome Powell, a day after the Central Bank held interest rates steady, accusing him of hurting the US economy and national security by refusing to cut borrowing costs.
In a post on his Truth Social platform, Trump said Powell “again refused to cut interest rates, even though he has absolutely no reason to keep them so high.”
“He is hurting our Country, and its National Security,” Trump wrote.
Trump claimed inflation is no longer a concern and accused the Fed chief of unnecessary caution. “We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat,” he said.
The President said current interest rates are imposing a heavy cost on the government. Powell, he said, “is costing America Hundreds of Billions of Dollar a year in totally unnecessary and uncalled for INTEREST EXPENSE.”
Trump tied his argument to US tariff policy, which he said has strengthened the economy and boosted government revenues. “Because of the vast amounts of money flowing into our Country because of Tariffs, we should be paying the LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD,” he wrote.
He said other nations benefit from low borrowing costs because of US policy. “Most of these countries are low interest rate paying cash machines, thought of as elegant, solid, and prime, only because the USA. allows them to be,” Trump said.
Trump argued that tariffs are generating billions of dollars for the United States while still leaving many countries with trade surpluses. “The Tariffs being charged to them, while bringing in $BILLIONS to us, still allows most of them to have a significant trade surplus, though much smaller,” he said.
He said the United States has treated trading partners generously. “I have been very nice, kind, and gentle to countries all over the World,” Trump wrote. He said stronger tariff action could bring in even more revenue. “With a mere flip of the pen, $BILLIONS more would come into the U.S.A.”
Trump again urged immediate action from the Fed. “The Fed should substantially lower interest rates, NOW!” he wrote.
He said tariffs have restored U.S. power. “Tariffs have made America strong and powerful again, far stronger and more powerful than any other Nation,” Trump said. He added that U.S. interest rates should reflect that strength. “WE SHOULD BE PAYING LOWER INTEREST RATES THAN ANY OTHER COUNTRY IN THE WORLD!”
The comments came a day after Powell said the Federal Open Market Committee decided to keep the benchmark federal funds rate unchanged in a range of 3.5 to 3.75 percent. Powell said inflation has eased from its 2022 highs but remains “somewhat elevated.”
Powell also said higher goods inflation has been “boosted by the effects of tariffs,” while disinflation continues in services. He said monetary policy is “not on a preset course” and that future decisions will be made meeting by meeting.
During the press conference, Powell defended the independence of the central bank from political pressure, calling it a standard practice in advanced democracies and warning that credibility would be hard to restore if lost.
(IANS)
