Trump Criticizes Fed for Inflation, Promises Economic Revival
President Donald Trump has denounced the Federal Reserve's decision to maintain interest rates, blaming the central bank for the inflation it created. He also accused the Fed of neglecting its regulatory duties and prioritizing "DEI, gender ideology, 'green' energy, and fake climate change."
Trump pledged to rectify the inflation problem by promoting American energy production, reducing regulations, balancing international trade, and revitalizing domestic manufacturing. He asserted that his policies would restore the nation's financial strength.
The remarks escalate a potential conflict between the president and the Fed over monetary policy direction. Trump had previously demanded lower rates, expecting the Fed to heed his request.
Fed Chair Jerome Powell dismissed Trump's comments, emphasizing the Fed's independence. However, he acknowledged uncertainties about Trump's economic policies could influence future monetary actions.
Powell cited tariffs, immigration, fiscal policy, and regulatory changes as variables warranting caution. He noted the still-unclear ramifications of Trump's tariff plans, which may impact inflation as the central bank seeks to control it.
Despite Powell's reluctance to discuss Trump, he reaffirmed the Fed's determination to fulfill its mandate independent of political considerations.
Trump reiterated his accusation that the Fed had been distracted by "DEI" and "fake climate change." He emphasized the Treasury Department's role in regulatory reform and facilitating lending to Americans.
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