The Fed Chairman will appear before Congress today and tomorrow, first before the Housing Financial Services Committee on Tuesday morning and again in front of the Senate Bank Committee on Wednesday morning.
Powell will be given the opportunity to justify why he and other members of the Federal Market Committee (FOMC) have so far refused to reduce the base rate from his current level of 4.25% to 4.5%.
The FOMC chairman has been equal in his arguments, separating from political dialogue, but has still faced criticism from economists who say his financial position is unfair.
Trump urged politicians at the two meetings this week to push for hard powell why he did not cut the basic level and he gave the president his wishes.
Write about the reality society A couple of hours ago, Trump said: “I hope Congress really works this dumb man, with a hard head. We will be paying for his inability for many years to come.”
Trump's legitimacy by pushing to reduce that rate is based on the fact that another The central banks around the world have begun Opening their own policy, he added: “Europe has had 10 cuts, we have had zero. There is no blonde, a big economy – we have to have two to three points below.
“It would save $ 800 billion in the USA a year, together.
The low -level push is the opposite of Trump's inquiry into the campaign elections last year. During the presidential contest, Trump claimed Powell was playing politics and would hand over the Biden camp for economic support if he cut.
Almost as soon as he won the Oval office, Trump changed the tack and began to ask Powell to cut – suggesting the economy was stable enough to develop low and increase economic activity.
This shows why the Central Bank is ordered to be free, so that a large economic lever can be used for long -term business profits by consumers Contrary to the oval office whims.
Powell and FOMC have become clear why they don't want to cut, pointing out reasons that can put two aspects of their two orders – great jobs and 2%inflation.
The key word from the last few meetings has been “transparent” –Instead, FOMC participants want to wait for more cement Data before you start listing the standard interest rates.
While the FOMC's role is not to comment on policy, referred to political issues such as Tax and geography push.
While markets may prefer to be cut, what analyzes analysts and similar investors is when Trump's pressure on the basic level comes from stressful questions.
When Trump threatened Powell's fire earlier this year, for example, markets responded negatively by investors warned to expect a decline in prices “strict” If the President went too far to bring the Fed's authority and freedom in question.
Trump Quickly to be pulled backSaying Powell – who was first appointed by the President in his first term – will spend his term, because of the end of 2026.
During change
While Trump's claim – that FOMC refusal to reduce the basic rate has cost a $ 800 billion economy – without explanation, some economists strongly believe that Powell should not be the basis for current decisions on the reasons for inflation.
For example, the Oval Office has changed its position on tariffs several times, whether it is through a 90 -day pause, or agreements with certain states, or increased threats to the EU's love.
But experts say that the sharp end of these threats has not yet been successful, and that all the exposure data and employment data have remained better than a few months ago.
Jeremy Siegel, a financial professor of Emeritus at Wharton School of Pennsylvania University, for example, writes: “Treating the price raised by tariffs as a reason for staying a barrier is just a bad economy. Compare the true economic level.”
Wise WiseWhere he is a senior economist, Siegel notes that federal governor Chris Waller has argued on the July rate, adding: “Is he reviewing Powell's position?