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Trump urges Fed Chair Powell to resign, claiming tariffs help US growth without fueling inflation
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IntroductionDemand for Powell's Immediate ResignationOn July 8 local time, U.S. President Trump publicly st ...
Demand for Powell's Immediate Resignation
On July 8 local time,Spot Exchange Rate U.S. President Trump publicly stated during a cabinet meeting that Federal Reserve Chairman Powell should "resign immediately." This is Trump's latest public pressure on the Federal Reserve Chairman, showing his increasing discontent with the current monetary policy.
Trump expressed that Powell has been complaining about "nonexistent inflation" over the past few months and has refused to take appropriate measures to address the current U.S. economic situation, emphasizing "it's time to cut interest rates now."
Reasserting Tariffs Haven't Increased Inflation
Trump also posted on the social platform "Truth Social," citing a recent study by the Council of Economic Advisers (CEA) that states U.S. tariff policies have not increased domestic inflation levels. He noted that the study showed import prices are actually declining, refuting previous media and some economists' claims that "tariffs are increasing inflation."
"Fake news and those so-called 'experts' were wrong again," Trump wrote. He emphasized that tariff measures are driving U.S. economic prosperity, with numerous new factories being built, more jobs being created, and trillions of dollars in investments flowing into the U.S.
Trump claimed that this research report should be given to "Mr. Too Late" Powell to remind him of his misjudgment on tariffs and economic trends.
Call for Federal Reserve to Cut Interest Rates
Trump reiterated that the Federal Reserve should quickly implement interest rate cuts to match the actual needs of the current economic environment. He pointed out that the Federal Reserve's current high interest rates are hindering economic recovery, especially since tariffs haven't created inflationary pressure, giving the Federal Reserve no reason to maintain high rates.
The market generally expects that the Federal Reserve will discuss whether to cut interest rates during its meetings at the end of July or in September, but Trump clearly wants to expedite this process to stimulate economic growth and alleviate market financing cost pressures.
Discrepancies Between Market and Policy Directions Persist
Despite Trump's strong advocacy for rate cuts, both the Federal Reserve internally and most economists believe that although current inflation rates have eased, the overall risk has not been completely resolved. Recent data shows that in May, the U.S. CPI rose by 2.4% year-on-year, close to the Fed's 2% target, but the prices in core services and some living costs remain high, prompting the Fed to remain cautious about rate cuts.
Additionally, although Trump believes tariffs haven't increased prices, some organizations argue that tariffs may accumulate effects in subsequent trade chains, impacting consumer price levels and enterprise costs, and therefore need continued observation.
Trump's statement signals an increasingly apparent push for economic and monetary policy efforts ahead of the election. Whether the Federal Reserve will swiftly cut rates as Trump wishes will influence the U.S. economic trajectory and global market expectations in the coming months.
At the same time, how Powell and the top Fed officials respond to Trump's latest pressure will be a focal point for the market and investors, especially as the U.S. continues to face the intertwined environment of tariff policy, debt ceiling, and global trade tension.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
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