US President Donald Trump intensified his ongoing feud with Federal Reserve Chair Jerome Powell on Tuesday, January 13, accusing the central bank leader
of hindering economic growth by not cutting interest rates more aggressively. During a visit to Michigan, speaking at the Detroit Economic Club, Trump argued that robust market performance should lead the Federal Reserve to ease borrowing costs instead of keeping them high. “If you announce great numbers, they raise interest rates,” he said. “When the market goes up, they should lower rates.” After making his case for faster rate cuts, Trump directly criticized Powell, claiming the Fed was failing to support economic growth. He noted that mortgage rates were falling “not with the help of the Fed,” and added, “If I had the help of the Fed, it would be easier, but that jerk will be gone soon.” The United States' President, Donald Trump, said he will pick his replacement for Federal Reserve Chairman Jerome Powell within the next few weeks, despite criticism related to a Justice Department investigation involving the renovation of the Federal Reserve Headquarters building, which may pose a challenge during the confirmation process, according to a report by Bloomberg. Trump's comments came at a factory tour in Michigan and suggested he plans to forge ahead despite opposition from several high-profile Republican senators. The president also criticised Senator Thom Tillis, a retiring Republican from North Carolina and a swing vote on the Senate Banking Committee, who has said he will block central bank nominees until the issue is resolved. “That’s why Thom’s not going to be a senator any longer,” Trump said. Earlier on Tuesday, January 13, Trump gave at least a tacit defence of the probe, which Powell and critics have described as an attempt to influence policy, by criticising the chair over cost overruns during the construction project, according to a report by Bloomberg. “He’s billions of dollars over budget, so either he’s incompetent, or he’s crooked,” Trump said at the White House. “I don’t know what he is, but he certainly doesn’t do a very good job.” According to a report by Bloomberg, in an interview with CBS News, Trump said he “couldn’t help” perceptions of the investigation, while claiming without evidence that “more people like it than not.” “He’s into billions and billions of dollars, and it looks like they won’t open for a long time,” Trump said, referring to the renovation. The move is a major escalation of the Trump administration's attack on the Fed, sparking new questions about the independence of the central bank. Trump has threatened the Fed before, but his hints about firing Powell before his tenure as Fed chair ends in May have been frequent. Now, Trump is considering his replacements.
Global Central Bankers back Fed Chair Powell amid Trump clash
Central bankers from around the world said on Tuesday, January 13, they stand in full solidarity with US Federal Reserve Chair Jerome Powell, after President Donald Trump dramatically escalated his confrontation with the Fed, with the Justice Department investigating and threatening criminal charges.
Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest," read the statement signed by nine national central bank heads, including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey.
