Saturday, 04 October 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Trump Urges Federal Reserve Board to 'Take Control' If Interest Rates Aren't Cut (2)
Friday, 1 August 2025 19:05 WIB | ECONOMY |ECONOMIC

President Donald Trump urged the Federal Reserve Board to "take control" if Chairman Jerome Powell doesn't cut interest rates, escalating his feud with the central bank's leadership.

"Jerome Powell 'Late,' a stubborn, STUPID man, must lower interest rates substantially, now. if he continues to refuse, the board must take control, and do what everyone knows should do!" the president wrote on social media on Friday.

The White House did not immediately respond to a request for comment on the president's remarks.

Trump's post came after Fed officials left interest rates unchanged on Wednesday. In a post-meeting press conference, Powell gave no clear indication that policymakers were likely to cut rates at their next meeting, in September. Investors are now anticipating only one rate cut by the end of the year.

Interest rate decisions are made by the Federal Open Market Committee (FOMC), which Powell chairs. Its constituents include the seven members of the Fed's Board of Governors in Washington and the presidents of the five regional Fed banks. The FOMC elects its chairman and vice chairman once a year.

Following Wednesday's decision, Trump resumed his sharp criticism of Powell after a brief detente, slamming the central bank chief for his interest-rate policy and the renovation of Fed headquarters, which critics have accused of mismanagement. Trump had asked lawmakers whether he should fire Powell, then told reporters he had no intention of doing so, indicating he was willing to wait until the central bank chief's term as chairman ends in May.

Bessent's Comments

Treasury Secretary Scott Bessent said Thursday that he hoped Trump could announce Powell's replacement by the end of the year. "We're putting together a very good list of candidates," he told CNBC. "I expect the announcement will be made by the end of the year."

Bessent also highlighted the presence of dissenting voices in Wednesday's decision and two potential vacancies on the Fed board early next year, suggesting the Fed could soon have a "majority" supporting a rate cut. Governor Adriana Kugler's position opens in January, and Powell's position on the board would be his second if he decides to leave the central bank entirely after his term as chairman ends.

Two Fed governors, Christopher Waller and Michelle Bowman, voted against the decision, the first time two board members have dissented since 1993.

Powell tends to believe the Fed is in a good position for now, given the lingering uncertainty surrounding the economic impact of Trump's tariffs. His message on Wednesday was balanced, tempering expectations for a September rate cut but not ruling out the possibility. (alg)

Source: Bloomberg

RELATED NEWS
The shutdown meant no jobs report...
Saturday, 4 October 2025 01:44 WIB

If it just seems like the first Friday of the month wasn't the same without being able to pore through the Bureau of Labor Statistics' hotly watched monthly jobs report, don't worry. You probably didn...

US ISM Services PMI declines to 50 in September vs. 51.7 forecast...
Friday, 3 October 2025 21:13 WIB

The business activity in the US service sector stagnated in September, with the Institute for Supply Management's (ISM) Services Purchasing Managers Index (PMI) declining to 50 from 52 in August. This...

The U.S. Senate Will Vote On Conflicting Plans To End The Government Shutdown, Though Neither Is Likely To Pass ...
Friday, 3 October 2025 19:16 WIB

The U.S. Senate will vote again on Friday on conflicting plans between Democrats and Republicans to end the government shutdown, which is now entering its third day, though there are no signs that eit...

Trump eyes cuts to 'Democrat Agencies' in government shutdown...
Friday, 3 October 2025 03:47 WIB

U.S. President Donald Trump said he will meet with his budget director Russell Vought on Thursday to determine which "Democrat Agencies" to cut, as he looks to inflict pain on his political opposition...

Why US Economic Data Is "Pending"...
Thursday, 2 October 2025 23:47 WIB

The bottom line: The release of official US data is delayed because the federal government is currently in shutdown. While the budget hasn't been passed, the Antideficiency Act prohibits federal agenc...

LATEST NEWS
Dow Extends Record High

The S&P 500 closed mostly flat on Friday, the Dow Jones extended its record run, rising 240 points finisheing at 46,758 after briefly surpassing 47,000 during the session, while the Nasdaq slipped 0.3% as the US government shutdown entered its...

Fed's Logan warns inflation pressures persist, could be made worse

Federal Reserve (Fed) Bank of Dallas President Lorie Logan struck a nervous tone on Friday, warning that despite a rapidly-weakening labor market, a lot of potential policy moves could accidentally spark another round of renewed inflationary...

The shutdown meant no jobs report

If it just seems like the first Friday of the month wasn't the same without being able to pore through the Bureau of Labor Statistics' hotly watched monthly jobs report, don't worry. You probably didn't miss much. While the BLS has gone dark with...

POPULAR NEWS
US ISM Manufacturing PMI improved a tad in September
Wednesday, 1 October 2025 21:21 WIB

The Institute for Supply Management's (ISM) data showed the Manufacturing PMI edging higher to 49.1 in September, up from 48.7 in August and...

European shares flat as healthcare gains counter broader market weakness
Wednesday, 1 October 2025 14:38 WIB

European shares were flat on Wednesday, with gains in heavyweight healthcare stocks offsetting the decline in the broader market, as investors...

Why US Economic Data Is "Pending"
Thursday, 2 October 2025 23:47 WIB

The bottom line: The release of official US data is delayed because the federal government is currently in shutdown. While the budget hasn't been...

Asian Stocks Rise, Chips Lead; Markets Remain Calm in the Face of US Shutdown
Thursday, 2 October 2025 07:50 WIB

Asian markets opened higher, following a global rally that pushed world indexes to new records, despite the US entering its first government...