Washington (Reuters) -US President Donald Trump renewed his criticism of the president of the Federal Reserve Jerome Powell Thursday, complaining of the Fed refusing to reduce interest rates.
Trump said that the reduction in interest rates would be “like the fuel of the jet” for the economy “, but he does not want to do it”. He said Powell was “not in love with me”.
The Fed This week has retained short -term borrowing costs in the range of 4.25% to 4.50%, where they have been taking place since December. While major prices are likely to increase both inflation and unemployment, the economy has so far shown that Wednesday, Powell said that the central bank is time to wait and see until there is more clarity on the place where prices are really found and how it affects prices and jobs. At this point, the Fed can act as needed, and potentially aggressively, he said.
Reduction rates generally stimulate the economy, but at an era of inflation higher than target, could also trigger an ascending spiral of price pressures which, according to Powell, must be avoided.
Trump did not hide his dissatisfaction with the conduct of Powell on monetary policy, sometimes suggesting that he would like to be gone, a rhetoric that has sent shares and obligations both as an investors at the cost of luck that the Fed could lose its independence and thus its ability to restrict inflation.
Powell, asked Trump reviews at his press conference on Wednesday, refused to comment. He said he intended to finish his mandate as president, which ended with about a year.
(Report by Andrea Shalal and Steve Holland; edition by Mark Porter and Chris Reese)
