On June 21, news reported by Caixin stated that on June 20 local time, U.S. President Trump once again called on Federal Reserve Chairman Powell to lower interest rates.
Trump indicated that he might have to change his mind about not firing Powell.
Trump once again referred to Powell as 'Mr. Too Late' on social media and severely criticized his complaints about inflation costs, attributing them to 'economic problems caused by the Biden administration.' He stated that Powell should make the 'largest and best contribution' to America by lowering interest rates.
Trump wrote: 'If he lowers the interest rates to where they should be—1% to 2%—this 'fool' could save America up to $1 trillion a year.' He also mentioned that currently, America has 'almost no inflation' and the economy is performing well. Trump stated that if Powell is indeed concerned about inflation or other risks, he should 'lower rates now' and raise them again if the situation changes in the future.
In addition, Trump hinted that he might reconsider whether to remove Powell from his position. Trump said, 'Maybe, just maybe, I have to change my mind about not firing him? But in any case, his term is coming to an end soon.'
Trump has repeatedly criticized Powell this year and threatened to remove him from his position as Chairman of the Federal Reserve.
The Federal Reserve concluded its monetary policy meeting on June 18, maintaining the current policy interest rate. Before the meeting, Trump attacked Federal Reserve Chairman Powell again, calling him 'not a very smart politician' and expressing dissatisfaction with his refusal to lower interest rates.
Powell responded to reporters, stating that the core mission of the Federal Reserve is to ensure economic stability and price stability, and did not directly respond to Trump's accusations.
