U.S. President Donald Trump criticized Fed Chairman Jerome Powell for his position on benchmark interest rates on Monday, accusing him of not taking enough action on easing monetary policy while claiming that the world's largest economy has “little inflation.” Declared that the cost of energy and “most other things” is falling, with the 47th U.S. president taking office in January, said his team is studying the legitimacy of his removal before his current term.
How the Dow Jones and the U.S. dollar fare after Donald Trump speaks to Jerome Powell
Trump's remarks once again caused a tremor on Wall Street, while lowering the dollar index to its lowest point in nearly three years. The Dow Jones Industrial Average (DJIA) index fell as low as 37,830.7, giving up 1,311.6 points, or better than the previous closing price (3.4%).
Trump's post on the Truth Society
In an article on social media network truth social networks, Trump wrote that “many people” demanded “preemptive” of benchmark interest rates, while energy costs are lower, food prices are greatly reduced, and there is little inflation, while “most other things” trends are down.
Since these costs trends are so smooth, I expect they will do with little inflation, but the economy may slow down unless Mr. Sir is too late, a major loser, now lowers interest rates, now 7 times. President Trump wrote on the platform. However, it is impossible to immediately determine that the U.S. president is referring to a preemptive cut.
“If the speed is not reduced”
Trump also said the U.S. economy can slow down unless the Fed immediately lowers key interest rates. He also said his team is looking at whether they can legally remove the current Fed chairman before their term expires.
Powell was appointed as the supreme leader of the U.S. Central Bank during Trump's first presidency. Powell's current term as chief of the central bank will expire in May next year.
The Bulls are once again under Trump's comments, falling down
The U.S. market has already staged wild volatility in the past few weeks, thanks to the round-trip uncertainty of trade tariffs and growing concerns about its potential impact on growth and consumer prices.
Last week, Powell said the ongoing tugboat war would hinder growth and create inflationary pressures.
