Posted on 06/20/2025 7:01:11 PM PDT by NoLibZone
President Trump on Friday floated the possibility of firing Federal Reserve Chair Jerome Powell as part of his latest round of intense criticism of the leader of the central bank over its decision not to lower interest rates. Trump, in a lengthy post on Truth Social, railed against Powell, labeling him a “numbskull,” “a dumb guy,” “and an obvious Trump Hater.” Trump appointed Powell to the post in 2017.
I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I’ve tried it all different ways,” Trump posted. “I’ve been nice, I’ve been neutral, and I’ve been nasty, and nice and neutral didn’t work!” The post included a graphic showing how the United States’s central bank rate compared to other nations. “I don’t know why the Board doesn’t override this Total and Complete Moron!” Trump added. “Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his Term ends shortly!”
Powell’s term ends in 2026. He said last November he would not step down if Trump asked and that it is “not permitted under the law” for the president to fire or demote him or any of the other Fed governors with leadership positions. Trump in April said he had no intention of firing Powell, though he has in recent days ratcheted up his criticism amid frustration over the Fed’s handling of interest rates. Fed officials kicked off the year expecting to continue cutting interest rates as inflation drifted back toward its ideal annual level of 2 percent. But the bank has held off through the first half of 2025 amid the uncertainty driven by Trump’s tariff plans.
Powell reiterated his call for patience Wednesday, after the Fed kept rates steady once again.
It is odd that the unelected, unaccountable Fed chairman has more authority over the money supply than the entire Federal government.
Yep, I am sure the writers of the Constitution had that in mind but forgot to include it.
During Biden’s 4 years FED kept rates under 1%.
The Fed's benchmark rate reached a two-decade high of 5.25% to 5.5% in July 2023. Since then, the rate has remained steady, with the most recent decision being to hold rates at the current range.
Fed dropped rates to near zero during covid pandemic. I remember it well because my annuity money markets were yielding negative returns. Fed raised rates when inflation spiked to 9%. As usual fed was behind the curve. Last couple of years I have enjoyed money market yield tax deferred.
Do it, he is a globalist rat
Some inconvenient items
1) No one knows if raising or lowering interest rates controls inflation. There are numerous instances in the historical record of the Fed acting and inflation doing the reverse. (Case in point, the oil shocks, over which the Fed has zero control)
2) Interest rates were near 0 for a very long time, during which inflation did not raise. 2009-2015. 0.3% Fed Funds. CPI average about 1%. Current Fed funds 5ish%. Current CPI 2.5-3%
3) Money is a substance created by central banks largely by whimsy. Why should we expect such a substance to obey any rules? There are no Economic Laws. None. How can there be?
uhm. I mqy be wrong that sounds alot like NY speak for nomination incoming. Js
Didn’t you say they were around 1% during the Biden years?
Nominate first by Trump
The current rate is 4.33%.
Absolutely no reason not to cut rates.
Trump appoints the board members. They have legal power to vote Powell out.
um- no...they were near zero for two years ten exploded....
https://fred.stlouisfed.org/series/FEDFUNDS
Powell is a LW idealouge who should be fired....i had this debate with a former Wall Street trader in my gym on Wednesday before the rate decision. He’s anti-Trump and said they should hold rates steady. I went back to the fall of ‘24 when inflation was still high yet Powell continued to lower rates and said it was all political.
He looked at the data and came back the next day, after the FEDS didn’t lower rates and said they would not consider doing so until the end of the year, and told me i was right- the case for lowering rates this week was obvious.
yet Powell cut rates throughout the fall of 2024 when inflation was higher than present time...i have no problem keeping the rates where they are...i have a problem with a LWer heading the Fed and making financial decisions based on his politics....
The current interest rates are killing the housing market- EVERYTHING is doing better than expected except the housing market. And remember- the FEDS statement on Wednesday was they won’t consider a rate cut until late this year
“Absolutely no reason not to cut rates.”
All we need for now is a quarter point reduction. That’s it.
I’d rather we fire the Fed altogether.
It was approximation
I did not memorize exact rate in each year. But I remember rates were Artificially LOW.
I agree with everything you said.
If not a LW ideologue, they are deep staters who hate outsiders like Trump who is not afraid to change things to benefit ordinary working Americans.
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