The exchange was tense. When inspecting the Federal Reserve this Thursday, July 24, Donald Trump again asked the head of the institution, Jerome Powell, to reduce the rates, but without going to the face as he has done by social networks and the cameras filed in recent weeks, repeatedly.
The 79 -year -old republican president came to observe an important renewal project of the imposing American Central Bank building in Washington.
Jerome Powell, challenged, vigorously shaking his head, a figure of $ 3.1 billion advanced by the US president on the cost of labor, instead of 2.7 billion at the beginning. “I’m not aware,” he said.
Deserving his glasses and examining an article that Donald Trump stretched in front of journalists, Jerome Powell emphasized that the Republican had added a “third building” in his estimate.
“It is a building that is under construction,” the president launched, wearing as his host with a site helmet. “No, it was built five years ago,” said Fed owner.
A little later, during a rapid newspaper session, Donald Trump said he was convinced that Jerome Powell “would do what is needed”, while the next meeting of managers of the American Federal Reserve (Fed) on the rates is scheduled for July 29 and 30.
Tensions month
The Republican leader denied any “tension” during the meeting and assured that he had not done “pressure” for a resignation.
Donald Trump had recently considered that the renewal site could have given rise to “fraud”, feeding speculation about a dismissal of the Federal Reserve Chief.
The Republican President appointed him during his first term (2017-2021), then Jerome Powell was renewed by Democrat Joe Biden. But it ensures bitterly repentance of this election and regularly overwhelms the central banker with virulent criticism.
“I should have reduced interest rates several times,” Donald Trump said Tuesday on Tuesday, he added: “People cannot buy a house because this guy is a Nigud. He keeps the rates too high and probably does it for political reasons.”
The American Central Bank, an independent institution whose decisions and comments have an immense impact on the markets, has maintained stable interest rates this year.
Until now, it pushes the idea of a fall in an uncertain context by the world protectionist offensive by Donald Trump, who could increase prices.
Break the rates
The key rates of the Fed, which guide the costs of loans of individuals and companies, are between 4.25% and 4.50% since December. The European Central Bank, which Donald Trump often refers, has gradually reduced its key rate, from 4% in June 2024 to 2% today.
The US president recently admitted that it was very unlikely to return the Chief of the Fed, in an irremovable or almost. Such dismissal would not be preceded and would require demonstrating the existence of serious failures or embezzlement of the very weighted central banker of 72 years, whose mandate ends in May 2026.
Interest rates are the main tool of central banks to guide the economy. Lower rates encourage activity, but prices can increase. Increased rates can combine inflation, but slows growth.
Source: BFM TV
