All posts tagged "Interest Rates"

President Donald Trump reacted to a rate hike by the Federal Reserve by framing it as a personal attack on him.

The Federal Reserve announced the rate hike on Wednesday, but Trump previously attacked former Federal Reserve Chairman Jerome Powell for not decreasing interest rates. The rate hike came under Kevin Warsh's leadership, the chairman Trump elevated to the job in May after months of attacking Powell.

Trump addressed the rate hike while speaking with reporters before a political rally in North Carolina, and it marked his first comments on the rate hike following a Truth Social meltdown. Trump told reporters that before the rate hike, the United States had the "lowest interest rate anywhere in the world because we're the best." He then began to speak in the third person to explain the Federal Reserve's decision to increase interest rates....

The new chairman of the Federal Reserve is already expected to have a tough time following through on one of Trump's main demands, according to the Wall Street Journal.

Trump tapped Kevin Warsh to replace Jerome Powell in January, but the economy back then looked a lot different, the Journal noted. What hasn't changed is Trump's expectation for lower interest rates, even bringing it up on Friday.

However, recent job reports and inflation are causing economists who pushed for interest rate hikes to move in a more cautious direction and to keep rates steady, per the Journal....

WASHINGTON — This week’s dust-up over the Justice Department investigation into Federal Reserve Chair Jerome Powell isn’t just unprecedented, it’s also unwarranted — at least according to Sen. Ted Cruz (R-TX) and other leading right-wing voices.

To Cruz and co, Powell should have gotten the boot on day one of President Donald Trump’s second term.

“The notion of independent agencies is inconsistent with the Constitution,” Cruz told Raw Story at the U.S. Capitol this week....

Despite the turmoil over poor job growth numbers on Friday, President Donald Trump scored a major victory with the resignation of a Federal Reserve Board member.

Adriana D. Kugler submitted her resignation letter to Trump, effective Aug. 8, so she can return to teaching at Georgetown University. She has served as a governor on the board since September 2023.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said in a statement. “I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”...

WASHINGTON – A California Republican admitted to not being a “super-duper financial expert” — then said he understood President Donald Trump’s urge to break with political convention and fire Federal Reserve Chair Jerome Powell.

That move, many financial experts and Democrats have said, will mean disaster for the U.S. economy.

“I don't get the feeling [Powell] is very responsive to the cues of the economy like you should be,” Rep. Doug LaMalfa (R-CA) told Raw Story at the U.S. Capitol, as Washington fixated on whether Trump will fire Powell, as he is reportedly preparing to do....

President Donald Trump is having a hard time ginning up congressional support for his desire to fire Federal Reserve Chair Jerome Powell, according to Semafor.

During a question-and-answer session with reporters on Wednesday, Trump said he polled House Republicans the night before on whether he should get rid of Powell.

Semafor's Shelby Talcott posted confirmation that "Lawmakers indicated they’d approve of firing him, and the president indicated he likely will soon." As he's made clear time and again, Trump is upset with Powell for failing to lower interest rates. But Trump needs a good reason to let him go....