Former President Criticizes Fed Chairman, Calls for 50% Interest Rate Cut

The of the United States has been vocal in his criticism of the current Federal Reserve Chairman, accusing him of artificially raising interest rates and suggesting that they should be reduced to half of their current levels. This criticism comes at a time when the U.S. economy is facing significant challenges, including inflation and economic uncertainty.

According to the , the Federal Reserve Chairman's policies are detrimental to the economy, and lowering interest rates could stimulate economic growth. However, it is important to note that the Federal Reserve operates independently of the executive branch and is tasked with maintaining stable prices and maximum employment. The Federal Reserve Chairman has previously stated that the Fed's decisions are based on data and economic indicators, not political pressure.

The criticism from the highlights the ongoing tension between the executive branch and the Federal Reserve. While the President has the power to appoint the Fed Chairman, the Fed's independence is crucial for maintaining the credibility of its monetary policy. The 's comments could be seen as an attempt to influence the Fed's decisions, which could potentially undermine its independence and credibility.

The impact of the 's criticism on the U.S. economy remains to be seen. While some analysts believe that the Fed may be more cautious in raising interest rates due to political pressure, others argue that the Fed will continue to prioritize its mandate of price stability and maximum employment. Regardless of the outcome, the 's comments have once again brought attention to the role of the Federal Reserve in shaping the U.S. economy and the importance of its independence.

The 's strategy of criticizing the Federal Reserve Chairman is seen as a deliberate attempt to weaken the dollar. By attacking the Federal Reserve Chairman, the aims to force him to lower interest rates or resign, allowing the to appoint a loyalist who would be more willing to lower interest rates quickly. Simultaneously, the hopes to devalue the dollar to boost U.S. exports and curb imports.

The has long advocated for a weaker dollar, and his current strategy is a response to the Federal Reserve Chairman's reluctance to quickly lower the federal funds rate. The Federal Reserve Chairman's term as Chairman will end on May 15, 2026, but he can continue to serve as a member of the Federal Reserve Board until January 31, 2028.

However, with the term of Federal Reserve Board member Adriana D. Kugler set to expire on January 31, 2026, the may appoint an outsider like the former Secretary of the Treasury, who has publicly campaigned for the position. The former Secretary of the Treasury had previously suggested establishing a "shadow Federal Reserve Chairman" to weaken the Federal Reserve Chairman's influence, a move that has been criticized for potentially creating "market noise."

Despite the pressure from the , the Federal Reserve Chairman has emphasized that any interest rate cuts during the July 29-30 Federal Open Market Committee meeting will depend on the data. However, any new Federal Reserve Chairman would need to convince the other 11 voting members of the FOMC to align with their policies, a challenge that could hinder the 's ambitions.

An expert from a research institution explained that the 's administration's "policy push" aims to permanently weaken the dollar's exchange rate against other currencies, hoping to reduce the trade deficit and attract manufacturers to the U.S. However, the expert strongly opposes this approach, arguing that it would introduce significant uncertainty into the global economy and be a self-inflicted wound for the U.S.

Weakening the dollar's global status would not only bring considerable additional uncertainty to the global economy but also be an unnecessary self-inflicted wound for the U.S. The expert's concerns highlight the potential risks and unintended consequences of the 's strategy, which could have far-reaching implications for the U.S. economy and the global financial system.