After its two -day session, the Fed said that “uncertainty about the economic prospects has decreased, but remains high”. Powell said to journalists that the central bank was expecting a growth dampers and faster increasing consumer prices for Trump’s customs policy.
The full extent was not yet noticeable for the US citizens. “It takes a while for the tariffs to find their way through the sales chain to the end consumer,” emphasized Powell.
Trump had previously referred to the central bank boss as “stupid people” because he did not give in to his call for an interest cut. “We have no inflation, we are just successful, and I would like to see that interest rates are falling,” said Trump. He promises higher investments and stronger economic growth.
The US President has been putting pressure on Powell for months and even threatened to dismiss it. In doing so, it questions the independence of the central bank, which is one of the basic principles of its work.
