U.S. President Donald Trump has again come for Jerome Powell, accusing the Fed Chair of probably delaying an interest rate cut for political reasons. However, he suggested that he has no plans to fire Powell despite the Fed rate cut delay.
Trump Says Fed Rate Cut Delay Is “Probably” Political
During a press briefing while hosting the Philippine president, Trump accused Powell of keeping rates high, probably for political reasons. He declared that interest rates should be at 1% as the country is “hot” and needs rate cuts now. However, he indicated that he has no plans to fire the Fed Chair but noted that he will be out soon anyway, with his tenure ending in May 2026.
The president further stated that the U.S. economy is strong but that Powell and the FOMC continue to keep rates high rather than move for a Fed rate cut. His statement comes just as the Fed Chair gave a speech today, where he failed to mention anything about monetary policy.
The president also used the opportunity to criticize Powell for the Fed’s renovation cost, something which the Fed Chair is currently feeling the heat over. As CoinGape reported, Trump’s ally Rep. Anna Paulina Luna has criminally referred him to the U.S. Department of Justice (DOJ) for perjury regarding the renovation costs.
As a result, there have been discussions that Powell is considering resigning, a development that could pave the way for a Fed rate cut sooner than expected. Moreover, the president has said that the Fed Chair could leave if a fraud case sticks.
Three Cuts To Come This Year
Goldman Sachs predicts that there will be three straight Fed rate cuts at the remaining three FOMC meetings this year, after the Committee keeps rates unchanged at the July 30 meeting. The bank expects this to happen as the labor market slows.
Goldan Sachs noted that private-sector hiring is almost at “stall speed,” which could spark a slowdown in the U.S. economy. Meanwhile, consumer spending has slowed for six months, a pattern which is typically synonymous with a recession.
Market commentator The Kobeissi Letter also made a case for a Fed rate cut, while highlighting the fact that the labor market continues to weaken. They noted that job postings on Indeed declined 8% year-over-year (YoY) in the week ending July 11, marking the lowest level since February 2021.
Furthermore, the Kobeissi Letter revealed that postings are now down 65% from their March 2022 peak. Due to this, available vacancies in the U.S. are just 4% above pre-pandemic levels.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.
Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.
Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
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