Posted on 06/30/2025 12:04:00 PM PDT by E. Pluribus Unum
The president said the next Fed chairman will lower interest rates.
President Donald Trump escalated his attacks on Federal Reserve Chair Jerome H. Powell on Monday, criticizing him for not cutting short-term interest rates right away to match lower borrowing costs in other countries.
The comments, conveyed in a handwritten note to the Fed chairman displayed by White House press secretary Karoline Leavitt, marked the latest in a string of insults as Trump and his advisers ramp up efforts to pressure Powell to resign or cut rates.
“You are, as usual, ‘too late,’ ” the president wrote alongside a list of interest rates set by world central banks, with the U.S. toward the lower end of the page, meaning it has relatively higher borrowing costs. He signaled that U.S. interest rates should only be close to 1 percent, much lower than their current levels of between 4.25 percent and 4.5 percent.
Powell, who is in his last year as Fed chairman, has ruled out any plans to step down early and says the central bank will make its policy decisions based on data rather than political pressure. A spokeswoman declined to comment for this article.
Like many presidents before him, Trump has pressed the Fed to lower its short-term benchmark rate, which trickles through the financial industry and influences what millions of people pay for mortgages and other types of loans. Generally speaking, those pressure campaigns have backfired.
That hasn’t stopped Trump, who has made attacking Powell a routine part of his public remarks. While Trump originally elevated Powell to the position in 2017, Trump toyed with removing Powell this spring, before dialing back his rhetoric after senior advisers warned the president that trying to remove the Fed chief risked exacerbating...
(Excerpt) Read more at washingtonpost.com ...
Replace the entire Fed. Restructure their authority and obligations as well.
The US Dollar is losing value by the minute and POTUS wants a rate cut.
Illogical.
Powell.
He is fulfilling his mission: to ruin the economy in time to get the Dems to win the midterms and undermine Trump whom he hates with all the venom running through his veins.
Attacks on Powell are all metaphorical.
The leftist media make it sound otherwise.
The dollar has lost 12% of its value since January yet POTUS wants a rate cut.
Illogical.
Trump sent Powell a hand-written letter.
Powell is really really in trouble now! If he is smart, he’ll fold and lower interest rates.
Too bad the Fed didn’t take the USTs completely out of the Supplementary Leverage Ratio (denominator) and eSLRs last week.
No rate cut needed.....
One more reason to remember the most important lesson about a Trump presidency: Ignore what he says in public, because it is almost always just political theater.
What’s wrong with having Treasuries as part of the SLR?
Seems desirable to me.
Correct.
Powell is not responsible for the uptick in PCE.
For those who don’t know, CPI is mostly urban. PCE is all locales. CPI emphasizes shelter and PCE less so. And maybe the critical difference is CPI is strictly a household survey of money that is spent from the household’s funds. PCE is the cost of the service — so if it’s healthcare then CPI, with the survey responder having a job that pays the insurance premium — whereas PCE would collect the change in the price of the healthcare premium, regardless of who pays it.
CPI is from Bureau of Labor Stats. PCE is from Bureau of Economic Analysis at the Commerce Dept.
The Fed prefers PCE. It ticked up in the last number. 2.8% Y/Y which was 0.1% more than expected, and more annoying, it revised April’s number upward 0.1%.
Inflation is NOT going the right direction. If it worsens, this demanded 1% short term rate won’t make any sense at all.
Let’s be clear here. 1% won’t make sense with inflation rising.
But what Trump is doing is non verbally admitting total desperation and going for broke . . . doing everything in an extreme way to try to explode GDP growth, in the hope that can be the mechanism to address the . . . unsolvable $37T.
He is not stupid. He is desperate, and has the balls to just try bizarre stuff.
It will fail, but good on him.
Very logical, if you understand that cutting the rates and flooding the currency market with more money spurs short-term economic activity.
And that spurt of short-term economic activity eventually results in (very) slightly higher income...
...which helps to hide the true impact of inflation (which intensifies later on down the road with the further loss of purchasing power).
So, logical in that it is short-sighted and “goal” oriented.
I’m old enough to remember his first campaign. What changed?
Jerome H. Powell = Swamp Rat
Of no value to anything time to go asap.
Political hacks shouldn’t be allowed to have a position like his.
Boy, Trump is dying to get a rate cut before they run the debt up to $40 Trillion.
Trump loves debt. He always has. The cheaper the better…but debt none the less.
Inflation is not rising.
They are capital constraints on banks and limit market (bank)
intermediation regarding USTs.
Take the USTs out of the ratio equation (denominator) and consumer rates would come down, IMHO.
No need for the Fed to “cut”.
But, the downside could be higher inflation.
It’s definitely a tight-rope, especially with tarrifs thrown in the mix.
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