Trump: Powell 'cut rates now'. President considers lawsuit against Fed chief
Former St Louis Fed President James Bullard said in an interview with Cncb that he would accept the Fed leadership if the central bank's independence is respected
2' min read
2' min read
Jerome Powell 'needs to cut rates now'. This was stated by Donald Trump on his Truth social, pointing out that he considers a possible lawsuit against the Fed chairman 'proceeding' for his 'horrible and incompetent job of managing the construction' of the Fed buildings.
"Three billion dollars for a job that should have been a $50 million repair. Not good!" the US president reiterated.
Trump, reeling from inflation data that confirmed an annual +2.7%, insisted that Powell, with his delays is causing incalculable damage. "Fortunately, the economy is so healthy that we've done away with Powell and his complacent Board," the president continued, accusing the previous Treasury secretary, Steve Mnuchin, of misguiding him in his choice of Powell, once again described as a "loser".
Bullard ready to lead the Fed, but only if it remains independent
Meanwhile, former St Louis Fed President James Bullard said in an interview with Cncb that he would accept the Fed leadership if the central bank's independence is respected. Bullard is one of the candidates for the post of Jerome Powell and admitted that he spoke with Treasury Secretary Scott Bessent, who is overseeing the search for the new Fed number one, last week.
Bullard favours lower rates and told Cnbc that he expects a cut of a full percentage point over the next year, starting in September. He also stated that he would not be 'dogmatic' on monetary policy, noting that he was among those who pushed for sharply higher interest rates when inflation was soaring in 2022 and 2023. "I will take the job if we set it up for success: if we can protect the value of the dollar... that will ensure lower interest rates over time; if we aim for low and stable inflation and respect the independence of the institution under the Federal Reserve Act," Bullard told Cnbc. "We have to set everything up for success, not failure. If you want someone to get to this position and fail, get another one; I think anyone on this list would insist on that before accepting this position."
