Trump calls Fed chair ‘stupid’ for not cutting rates

AFP | Washington

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US President Donald Trump lashed out yesterday at the Federal Reserve for not cutting interest rates, calling the central bank’s leader “stupid” and insisting that there is “no inflation” despite worries over fresh tariffs.

“We have a stupid person, frankly, at the Fed, he probably won’t cut today,” Trump said, hours before the Fed was due to release its latest interest rate decision. “We have no inflation, we have only success, and I’d like to see interest rates get down.” The Federal Reserve has kept the benchmark lending rate unchanged this year at a range between 4.25 percent and 4.50 percent, and analysts expect policymakers will remain on the sidelines until price increases cool sustainably. Powell has maintained that the Fed’s rate-setting committee would make its decisions based solely on objective and non-political analysis, the Fed previously said.

The Fed chair has also defended US central bank independence over rates in his recent meeting with Trump.

While Trump has imposed a 10 percent tariff on most US trading partners and steeper levies on imports of steel, aluminum and autos in recent months, these have not triggered a widespread price surge so far.