Trump Urges 3% Interest Rate Cut, Calls for Powell's Resignation

President Donald Trump has escalated his criticism of the Federal Reserve, urging the central bank to reduce interest rates by 3% and calling for the resignation of Fed Chair Jerome Powell. This latest demand comes at a time when the economy is strong and inflation is low, with Trump asserting that the current interest rate environment is hindering economic growth.

Trump has consistently pushed for lower interest rates, with his most recent demand being a reduction to 1% or lower. He has accused Powell of harming the U.S. economy by not complying with his calls for lower interest rates, suggesting that Powell should step down if he cannot implement the necessary changes. Trump's dissatisfaction with Powell's stance on interest rates has been growing, with the president previously calling for Powell's resignation earlier this month.

Trump's demands for lower interest rates have raised concerns among experts, who caution that such a significant reduction could have adverse effects on the economy. Some analysts warn that a substantial decrease in interest rates could potentially lead to a collapse in the bond market and a decrease in the value of the dollar. Despite these warnings, Trump has persisted in his calls for lower interest rates, citing low inflation as a justification for the need to cut rates.

Powell, on the other hand, has shown resistance to the White House's pressure. The Fed chair has maintained that the central bank's decisions are based on data and economic indicators, rather than political pressure. Powell's stance has been supported by some economists, who argue that the Fed's independence is essential for maintaining economic stability.

Trump's calls for lower interest rates and Powell's resignation have added to the ongoing tension between the White House and the Federal Reserve. The president's demands for lower interest rates have been met with resistance from Powell, who has maintained that the Fed's decisions are based on data and economic indicators. The ongoing conflict between the White House and the Federal Reserve has raised concerns about the potential impact on the economy, with some experts warning that a collapse in the bond market and a decrease in the value of the dollar could result from Trump's demands.