 "US inflation at 2.7%: Trump targets Powell, says ‘the jerk will be gone soon’")
US President Donald Trump on Tuesday sharpened his criticism of Federal Reserve Chair Jerome Powell, accusing him of undermining economic gains by refusing to move more quickly on interest rate cuts. Pointing to fresh inflation data for December, Trump said the figures showed the Federal Reserve should begin easing policy immediately.
Data released by the US Bureau of Labor Statistics indicated that inflation did not rise further last month, with consumer prices up 2.7 per cent year on year, while core inflation, which excludes food and energy, eased slightly to 2.6 per cent.
Speaking at the Detroit Economic Club during a visit to Michigan, Trump said strong market performance should prompt the central bank to ease borrowing costs rather than tighten them. “If you announce great numbers, they raise interest rates,” Trump said. “When the market goes up, they should lower rates.”
Trump blasts Powell
After outlining his argument, Trump directly targeted the Fed chair. He said mortgage rates are declining and “that’s not with the help of the Fed.”
“If I had the help of the Fed, it would be easier, but that jerk will be gone soon,” Trump said, escalating his long-running feud with the central bank chief.
Manufacturing push and broader economic message
Trump has repeatedly clashed with the Fed chief over its rate strategy, pressing for faster cuts to boost growth and manufacturing. He argues that lower rates would drive investment and ease pressure on consumers, while the Fed remains focused on controlling inflation and maximising employment.
The remarks came during a trip aimed at highlighting Trump’s manufacturing push and countering anxiety over job growth. The US President toured a Ford plant in Dearborn that produces the F-150 pickup before addressing business leaders in Detroit.
Quick Reads
View AllEarlier in the day, Trump accused Powell of either being “incompetent” or “crooked,” citing cost overruns linked to renovations of the Fed’s Washington headquarters, an issue now under Justice Department scrutiny.
Powell confirms criminal investigation
Jerome Powell confirmed that the US Justice Department has opened a criminal investigation tied to his past Senate testimony on renovations at Federal Reserve office buildings, he said on Sunday.
He linked the investigation directly to President Donald Trump’s repeated complaints that the Fed has been too slow to cut interest rates.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best judgment of what serves the public, rather than following the president’s preferences,” Powell said in a video statement.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this unprecedented step must be viewed in the broader context of the administration’s threats and sustained pressure.”
Powell is set to stand down in May, and Trump is expected to name a successor as chair by the end of the month.
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