Trump Pressures Fed for Rate Cuts Amid Trade Concerns

U.S. President Trump has repeatedly urged the Federal Reserve to cut interest rates, expressing his desire for the central bank to accelerate rate cuts to alleviate economic pressures. This comes as concerns about Trump's trade agenda deepen, and the Fed is preparing for potential price shocks that could result from Trump's tariffs. Despite economic weakness, the Fed has delayed any rate cuts, focusing on the potential impacts of Trump's trade policies.

Trump's criticism of the Fed has been ongoing since the central bank's decision to pause rate cuts last Thursday. Although his anger has been relatively mild so far, he has not issued any direct threats. However, sources close to the White House suggest that Trump might attempt to dismiss Federal Reserve Chairman Jerome Powell. The source indicated that Powell is unlikely to leave voluntarily, but Trump could potentially try to fire him. The source also noted that Powell has left a strong impression of reassurance and stability, making it less likely that he would step down voluntarily.

When questioned about the government's authority to dismiss Federal Reserve officials, following the recent firing of two Federal Trade Commissioners, the White House did not provide any new statements. This leaves the situation uncertain, as it is unclear whether Trump still plans to let Powell complete his term or if he will take further action.

Trump's aggressive measures to strengthen his control over the government and reshape it according to his political desires have been evident in recent actions. The potential dismissal of Powell would be a significant move, given the independence of the Federal Reserve and the importance of its role in managing the economy. The situation remains fluid, with no clear indication of how it will unfold.