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Donald Trump has attacked the head of the US central bank for not cutting interest rates, stating that Jerome Powell’s “termination cannot come fast enough!”.
The US president took to social media to renew his criticism of Powell ahead of the third interest rate cut this year by European Central Bank (ECB).
On Thursday, it announced that it had reduced the key rate “owing to rising trade tensions”.
Trump, who nominated Powell as Federal Reserve chair in 2017 during his first term, wrote that he “is always TOO LATE AND WRONG” on reducing borrowing costs.
Trump continued: “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”
While oil prices have fallen since the start of the month when Trump unveiled his tariff regime, eggs prices have risen to $6,23 per dozen, according to official data.
Meanwhile, the BBC has found no evidence for Trump’s claims about how much money the US is collecting from tariffs.
As Trump attacked Powell, Christine Lagarde, president of the ECB defended her American counterpart.
“I have a lot of respect for my friend and esteemed colleague Jay Powell,” said Lagarde as she discussed the decision to cut European interest rates from 2,5 percent to 2,25 percent.
“We have a solid, steady relationship amongst central bankers.”
The president lashed out after Powell said on Wednesday that US economic growth will be hit and prices will rise for consumers as a result of Trump’s tariffs.
He said the import taxes were larger than the bank had expected, going beyond the higher end of its estimates.
There has been turmoil on global stock markets as investors reacted to the tariffs and an escalating trade war between the US and China.
Mr Powell said: “The level of the tariff increases announced so far is significantly larger than anticipated. – BBC
Online Reporter