Former President Donald Trump has increased his attacks on Federal Reserve Chair Jerome Powell. He has called for interest rate cuts now and has been advocating for his directors to back blockchain legislation. His statements come on the heels of the release of the most recent Consumer Price Index (CPI) report. He has a point — the data does suggest that rates ought to be much lower.
In a recent post on social media platform Truth Social, Trump labeled Powell a “knucklehead” for maintaining high interest rates, asserting that the rates should already be closer to 1%. He argued that the existing monetary policy is destructive to the economy. He claimed that reducing interest rates would save the U.S. government more than a trillion dollars per year in interest payments.
Trump’s comments raise the prospect of him still putting pressure on the Federal Reserve for lower interest rates. So, he is indeed on the frontlines pushing back against real fiscal irresponsibility. He decried the Fed’s recent $2.5 billion renovation project, claiming the short-lived renovation plan is a perfect example of wasteful spending.
“Consumer Prices LOW. Bring down the Fed Rate, NOW!!!” – Donald Trump
On the political call to action side, Trump is calling on Republican lawmakers to push cryptocurrency legislation through, which he’s whimsically named Crypto Week. He doubled down on his enthusiastic support for cryptocurrencies, hoping to cement his title as the crypto-friendly financial sector super hero.
The former president’s worries go deeper than just the state of the economy and inflation at home. He followed that up with a warning about possible new “secondary tariffs” on any country that continues to do business with Russia. This resonates especially for countries that are still importing Russian oil and gas. This position represents Trump’s broader understanding of foreign policy. He’s a huge proponent of tough, isolationist treatment with enemies of American values.
Now Trump is the one out there lobbying for a rapid series of interest rate cuts. He has further hinted that he would seek to dismiss Powell “for cause.” This denunciation intensifies an already high level of hostility between Trump and the Fed. He’s hell bent on remaking the economic policy prescription to align with his fantasy.