Trump says he believes Powell is ready to start lowering rates
President Donald Trump said that on Friday, the Federal Reserve will begin to reduce interest rates the day after meeting with the President of the Central Bank Jerome Powell.
The President believes that the meeting has received a positive tone and that the FED is ready to achieve the monetary policy he has been looking for for months.
“I think we had a very good meeting on interest rates. [Powell] To me … very strongly, the country is going well, ” he said. Trump told journalists.
Powell and other policy makers were reluctant to low rates while waiting to see the impact of Trump’s tariffs on inflation. In fact, a argument that Powell against the segment is that the economy is strong enough to withstand higher proportions as the authorities follow how the data develops.
Before Trump’s words, Russell Vought, the White House Budget Director, protected the heat in the FED’s renovation project and put pressure on lower interest rates and forced the case to review the Central Bank.
Vought repeated Trump’s desire to start alleviating monetary policy as a way to help the FED’s economy and especially the housing market.
“There are a lot of problems with the Fed, and we want to make sure that these questions are answered over time.” He said. “This is not a printing campaign for the FED president.”
After the meeting of Thursday, the ton was more conciliatory between Trump White House and Powell Fed, and even years later.
Both sides described the tour as positive and a FED official made a statement on Friday, “honored” to meet the Central Bank Trump and other Republican officials.
“We are grateful to the president’s encouragement to complete this important project.” He said. He continued: “We are determined to continue to be careful because we see to complete the project.”
Continuing pressure
Nevertheless, Vought said that Scott Bessent, the Treasury Secretary of the White House, plans to follow that “the whole” Federal Reserve should be reviewed.
In addition to the issues on the building project and interest rates, the authorities criticized the FED for the operational deficit they carried out because their interest rates were high. In the past, the Fed reminded that they have regained from their investments to the treasury, but it has been conducting a deficiency of approximately 80 billion dollars in 2024 because it has noticed that it has noticed the interest rate investments it has paid to bank reserves.
“We will continue to express our policy concerns about the FED’s management.” He said. “You will not be on the Fed and you have no criticism that leads your way. This is not something that exists in the American political system.”
During the Thursday meeting, Trump also expressed his trust that Powell and his colleagues would see the ways of the president when it comes to rates.
“I believe the president will do the right thing,” Trump said to journalists. He said. “I mean, it may be a little too late as the expression progresses, but I believe I believe you will do the right thing.”
Despite the previous Rancor, Trump has recently withdrew the previous threats to try to expel his Fed chair, and reiterated that Powell did not see the need to resign on Thursday.
Futures markets do not give almost no chance for a ratio deduction when the FED is collected next week, and the next move is not considered likely until September. Market pricing also leans towards the possibility of another deduction before the end of the year.
