The chairman of the Jerome Powell federal reserve system shares a half -year report of the federal reserve system.
President Donald Trump On Tuesday he called the Federal Reserve and said that the central bank should reduce interest rates.
“Interest rates should be reduced, something that would go hand in hand with the upcoming tariffs !!!” Trump said in a post on the Social Truth. “Leave Rock and Roll, America !!!”
President's comments come to the Fed Chair Jerome Powell At Capitol Hill, Hill said that the central bank did not have to “rush” to reduce interest rates.
Federal Reserve System holds interest rates stable in inflation uncertainty
“We don't have to be in a hurry to adjust our political attitude,” Powell said in front of the Senate Banking Committee on Tuesday. “We know that policy limitation too fast or too much could prevent inflation progress. At the same time, reducing policy restrictions too slowly or too little could disproportionately weaken economic activity and employment.”
Jerome Powell, chairman of the Federal Reserve System, testified to the Senate of the Senate 11, and said that the central bank “may not be in a hurry to adjust our political attitude”. .
Fed officials at their last session in January organized a reference value the rate of federal funds Stable in the range of 4.25% to 4.5%.
Trump says he won't shoot a Fed Jerome Powell chair
There are three consecutive reduction in interest rates at the last Central Bank meetings-including a reduction by 50 foundations in September and a couple of 25-basin reductions in November and December.
The FOMC statement in January stated that the Fed continues to monitor its dual mandate to achieve maximum employment and inflation at 2% for a longer period of time. He added that “the economic outlook is uncertain and the committee is attentive to the risks of both sides of its dual mandate.”
Trump's Wednesday's contribution is not the first time the President commented on interest rates this year. During a speech in the World Economic Forum in January, he said he was planning to reduce the price of oil and energy for inflation – which he thinks as an impulse for Fed to reduce rates.
“With the fall of oil prices, I will demand that interest rates fall immediately. And they should also drop around the world. Interest rates should track us,” Trump said.
Trump, who spoke before the World Economic Forum in Davos, Switzerland, said he would require interest rates to be lower than the current levels. A possible sign that it is preparing a possible battle with a federal reserve.
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At a press conference after the Fed's decision, Powell was asked by a reporter whether he had an answer to Trump's comments to the World Economic Forum. The reporter asked the chairman of the Fed whether Trump handed over this demand for him and, if he had an answer or what was the effect of such a presidential comments.
“I will not have any answer at all or comment on what the president said. It is not appropriate for me to do so, ”Powell said at that time.
