Trump renews criticism of Fed’s Powell for not reducing charges

WASHINGTON (Reuters) -U.S. President Donald Trump renewed his criticism on Thursday of Federal Reserve Chair Jerome Powell, complaining the Fed is refusing to decrease rates of interest.

Trump mentioned reducing rates of interest could be “like jet gasoline” for the economic system “however he does not need to do it.” He mentioned Powell is “not in love with me.”

The Fed this week stored short-term borrowing prices within the 4.25%-4.50% vary, the place they’ve been since December. Whereas huge tariffs are prone to enhance each inflation and unemployment, the economic system to this point has proven little signal of both, Powell mentioned on Wednesday, giving the central financial institution time to attend and see till there’s extra readability on the place tariffs really find yourself, and the way that impacts costs and jobs. At that time the Fed can act as wanted, and doubtlessly aggressively, he mentioned.

Chopping charges sometimes boosts the economic system, however in a time of above-target inflation, might additionally unleash an upward spiral of worth pressures that Powell has mentioned should be prevented.

Trump has made no secret of his dissatisfaction with Powell’s conduct of financial coverage, at occasions suggesting he would really like him gone, rhetoric that despatched shares and bonds each down as traders priced within the likelihood the Fed might lose its independence and thereby its potential to restrain inflation.

Powell, requested about Trump’s criticisms in his information convention on Wednesday, declined to remark. He has mentioned he intends to finish his time period as chair, which ends in a few yr.

(Reporting by Andrea Shalal and Steve Holland; Enhancing by Mark Porter and Chris Reese)