Trump says Fed can raise rates if inflation returns, but warns Powell will be "too late for that too"
Key Takeaways
- President Trump stated he will not fire Fed Chair Jerome Powell despite previous comments.
- Trump criticized Powell for being slow to reduce interest rates but supports future hikes if inflation rises.
Trump said Thursday that if inflation picks up next year, he would support the Fed’s decision to increase interest rates. Still, the US President added that Fed Chair Jerome Powell would still be slow to act, just as he believes Powell is currently dragging his feet on rate cuts.
“Let’s say there was inflation. In a year from now, raise your rates. I don’t mind, raise your rates. I’m all for it. I’ll be the one to be calling you,” Trump said at a White House event today, as first reported by Bloomberg. “He’ll be too late for that too.”
Trump clarified that he had no plans to remove the Fed chair, softening his remarks from last week that he would soon nominate someone new to lead the central bank.
His comments have revived succession chatter at the Fed, with Treasury Secretary Scott Bessent emerging earlier this week as a name of interest among Trump advisers.
Bessent has not confirmed nor denied any intention to pursue the role, while the White House has dismissed the report.
Trump also criticized Powell’s approach to monetary policy amid signs of easing inflation, saying the Fed has been too slow to reduce interest rates. He expressed frustration about how current rates are affecting government borrowing costs.
Despite Trump’s continued pressure, the Fed is widely expected to keep interest rates on hold at the upcoming FOMC meeting, CME FedWatch data has indicated.
The CPI report for May, published on Wednesday, showed a marginally softer reading than expected. However, year-over-year inflation ticked up to 2.4% from 2.3% in April, still exceeding the central bank’s 2% target.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hillenbrand's Strategic Discipline: A Blueprint for Dividend Stability in Industrial Manufacturing
- Hillenbrand, Inc. maintains a 4.11% dividend yield in industrials, double the sector average, via disciplined cash flow management and 15.65% payout ratio. - Despite 49% stock price drop and 2024 net loss, $191M operating cash flow and $799M liquidity sustain dividends amid debt reduction priorities. - 2025 guidance projects 25.51% payout ratio, relying on earnings recovery, while 14-year dividend growth streak and institutional backing reinforce long-term stability. - Strategic focus on cash generation
The Fed's Independence Hangs in the Balance as Trump Seeks a New Leader
- Trump’s administration evaluates 11 candidates for Fed chair as Powell’s term ends in May 2026. - Chris Waller (27% PolyMarket odds) and Kevin Warsh emerge as top contenders with market expertise. - Trump’s attempt to remove Fed Governor Lisa Cook sparks legal battles and independence concerns. - Political influence risks Fed’s independence, potentially destabilizing U.S. monetary policy and global economy.
Meme Coin Showdown: Trump's ETF Bid vs. Arctic Pablo's Rocket Fuel
- U.S. crypto market sees surge in Official Trump Coin (TRUMP) and Arctic Pablo Coin (APC), driven by speculative hype and aggressive strategies. - TRUMP, a Solana-based meme token, nears ETF filing with $8.84 price and 40.83% annual gain, while APC’s $3.65M presale targets 769.56% ROI post-listing. - Both projects highlight meme coin momentum but face risks: TRUMP’s low SEC clarity and APC’s reliance on community-driven growth raise sustainability concerns for investors.
Polkadot News Today: Paraguay Embarks on Blockchain-Driven Real Estate Revolution
- Polkadot partners with Paraguay to tokenize Assuncion Innovation Valley (AIV) via BuB blockchain platform, leveraging Moonbeam and Polkadot networks. - AIV will issue 130,000 compliant share tokens with dividend rights and voting privileges, automating profit distribution through smart contracts from year three. - Project includes hotel, university, and data center, with phased token sales prioritizing existing investors and planned 2028 major issuance. - Initiative highlights real-world asset tokenizati
Trending news
MoreCrypto prices
More
