Donald Trump recently claimed he’s a “kind” person, yet he criticized Jerome Powell, the Federal Reserve chair he appointed, calling him a “moron.” This outburst came on Truth Social, where Trump expressed frustration over Powell’s decision not to lower interest rates.
Trump has consistently criticized Powell since taking office. The latest decision marks the first time since July that the Fed hasn’t cut rates. Trump argued that high rates are damaging the economy and that inflation is no longer a threat. However, Powell has stated that inflation isn’t fully under control and warned about ongoing economic risks, like weak job growth.
In the backdrop of these tensions, experts note that tax tariffs—often touted by Trump as beneficial—aren’t a long-term solution. Many economists agree that their costs tend to shift to consumers, raising prices rather than relieving them. According to a recent survey by the Council of Economic Advisers, 82% of economists believe tariffs could worsen inflation in the long run.
On social media, reactions to Trump’s comments have varied. Supporters echo his criticisms of Powell, while others express concern about the consequences of such rhetoric on economic policy.
Recently, Powell emphasized the importance of adhering to the law amidst pressure from the Trump administration, stressing that accountability is key in a democracy. As debates on fiscal policy continue, the dynamic between the Fed and the White House remains closely watched.
For more insights on economic policies, check out this report by the Federal Reserve.
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