Trump would like to become the new head of the Fed. “Powell is stupid”

On Wednesday, the President of the United States Donald Trump called the President of the Federal Reserve Jerome Powell a “stupid person”, anticipating that on Wednesday he would not make a decision to reduce interest rates again. Trump suggested that after the expiry of Powell's term of office he could call himself to his position.

Trump commented on the Wednesday Federal Meeting of the Open Market Operation Committee (FOMC), at which the decision on the level of interest rates will be announced. As he assessed, contrary to his pressure he exerts, the feet probably will not be reduced.

“Honestly, we have a stupid man in the Fed, he probably won't cut today. Europe had 10 cuts, and we didn't have any” – said Trump during a conversation with journalists before erecting two new flagship masts in front of the White House. The president accused the head of the central bank that he is politicized, that he hates him, that he was a democrat (in fact Powell is a republican) and that it costs the country “billions of dollars” due to the higher costs of incurring debt. He also complained about his former finance minister Steve Mnuchin that he gave him “great advice”, recommending Powell to this position in 2017.

“I call him +late +. I told him: +Come, late, let's go to dinner +. I do it in all possible ways: I'm nasty, I'm nice – nothing works” – Trump irritated. “He's just stupid, I don't expect anything from him. Maybe he'll lower a little, but he should lower by two and a half points” – he added.

The president also asked advisers, Can he appoint himself to his position after Powell's term of office next year?

Most economic commentators expect that on Wednesday the FED will leave interest rates at the current level, in the range of 4.25-4.5 percent. due to uncertain economic perspectives. The FOMC meeting is, however, closely observed in terms of forecasts and signals for the future that the central bank will present, including those regarding inflation and whether it will maintain a previously signaled plan of two interest rates this year.

So far, despite the forecasts about the increase in prices as a result of Donald Trump imposed on products from around the world, inflation has not increased. In April, the inflation rate favored by the Fed, the base PCE fell on an annual basis from 2.7 to 2.5 percent. In turn, the CPI index in May increased by 0.1 percent. in a monthly basis, after a growth by 0.2 percent a month earlier. Unemployment remains at a low level of 4.2 percent.

From Washington Oskar Górzyński (PAP)

OSK/ MAL/