In an act carried out in the White House after those comments, Trump added that “I think I know the interest rates much better than them, and I think I know them without a doubt much better than the main person in charge of making that decision”, in An apparent reference to the president of the FED, Jerome Powell, whom Trump appointed leader of the agency in his first stage as president.
Trump’s statements are produced five days before the first MONETY POLICY Meeting of the Fed during his mandate -January 28 and 29 -, with very broad expectations that officials will maintain unchanged types.
In its December monetary policy meeting, the Fed cut the interest rate in a percentage quarter to place it between 4.25% and 4.5%.
For the whole year 2024, the Federal Reserve reduced the fees at a percentage point in a context of decreased inflationary pressures and a sensation among federal reserve officials that they wanted monetary policy to exert less restrictions on the impulse of The economy. At the December meeting, officials also cut cuts of cuts in 2025 amid expectations of higher levels of inflation and slightly better growth.
Trump’s comments on monetary policy on Fed rates are very unusual for presidents in the modern era and conflict with the design of the agency to set the rates independently. The Fed, which does not have to follow any instruction from the president, did not immediately respond to a request for comments.
