The Federal Reserve Chairman ignores Trump’s request to reduce interest economy
1/7/2025–|Last update: 20:00 (Mecca time)
The US Federal Reserve Chairman, Jerome Powell, stressed the Central Bank’s intention, “Waiting to learn to learn more” regarding the impact of customs duties on inflation before reducing interest rates, ignoring President Donald Trump’s demands with an immediate and deep reduction in interest rates.
Powell said at a meeting of the central banks in Portugal, a day after Trump sent him a handwritten message, in which he pointed to the low interest rates that other central banks reduced.
He pointed to the need for the United States to move, adding, “We simply take some time … as long as the American economy is in a good situation, we believe that optimal behavior is waiting and learn more and knowing what these effects may be.”
Focus against insults
When asked about the wave of insults by Trump, Powell was commenting that the federal reserve focused “100%” on his goal of inflation and jobs, a warm applause from the public at a European Central Bank conference, and from Powell’s colleagues from the European Central Bank, England Bank and other central banks who joined him on the stage in a discussion episode.
The independence of the central bank from the pressure of elected officials, at least in determining interest, is a key factor in keeping inflation under control.
Meanwhile, Powell pointed out that the majority of federal reserve officials, in recent expectations, still expect the standard interest rate to be reduced later this year, with any of the remaining four central bank meetings excluded.
The next federal reserve meeting will be held on July 29 and 30.
“It will depend on the data, and we will hold a meeting after another. I will not exclude any meeting or put it directly. It will depend on how the data is evolved,” said Powell.
The latest recruitment data, which covers June, is issued with economists to slow down job growth, and new inflation data is scheduled to be issued within two weeks, while July 9 is the deadline for the imposition of higher international customs duties.
