Donald Trump said Thursday that he could initially force the head of the American Federal Reserve (FED), Jerome Powell, reiterating his attacks against him about his interest rate policy.
“It is more than the moment that Powell’s mandate ends,” said Donald Trump on his social social platform before during the day, while the second mandate of the Fed president must end in May 2026.
“Face the unpredictable”
The latter should have gone to lower interest rates for a long time, such as the ECB, “the European Central Bank added to the US president, encouraging Jerome Powell to” do it now. “
The ECB officials, who meet every six weeks, have just agreed a fall of 0.25 points of the key rates to strengthen the economy of the euro zone.
His president Christine Lagarde said Thursday that the ECB should “face the unpredictable” and be “agile”, considering impossible to participate in advance in a rate trajectory in the uncertain context of the commercial war carried out by the United States.
He also published his solidarity with his counterpart from the US Central Bank, for whom he said he had “much respect.”
A rebirth of inflation to come?
The customs duties sought by Donald Trump place the Federal Reserve in the face of a “complicated”, Jerome Powell said Wednesday, believing that these surcharges “certainly led to at least one temporary increase in inflation.”
The Republican leader had already urged Jerome Powell on April 4 to lower interest rates, believing that it would be “the perfect moment.”
The Fed has maintained its main stable rates, between 4.25% and 4.50%, since the beginning of the year. The fall in oil decreased inflation in March, with the consumer price index that fell 0.1%, after an increase of 0.2% in February. The index was reduced by lower prices in the pump: -6.3% for a month and -9.8% in one year.
This has confirmed the White House in its customs policy, while economists plan a rebirth of inflation due to the new customs tasks established by Donald Trump.
However, in March, the surcharge of imported products to the United States had not entered into force. Since then, and despite spectacular reversals, the United States has been reaching foreign products of 10% additional customs tasks, and China’s with a punitive surcharge of 145%.
Source: BFM TV
