Washington (dpa -Afx) – President Donald Trump wants to resign from central bank chief Jerome Powell because of the high interest rates in the USA. Trump keeps insulting the head of the mighty central bank Federal Reserve (Fed) because he wants a lower key interest rate. This would boost the economy and save the government many billion in debt service – however, according to an expert view, also heat inflation.
When asked by a journalist, how he was demanding for Powell’s resignation, Trump said in the White House: “I wish he would resign – if he wanted it. He did a lousy job.” Powell is simply a “stupid person”. With a significantly lower key interest rate, the government would save “hundreds of billions” annually, Trump argued. Maybe you could save up to $ 950 billion, said Trump.
US President hopes for the successor of the central bank manager
He expects Powell’s successor to reduce interest. Trump will nominate the successor, but the Senate has to agree to the personnel. The Central Bank Council decides on the key interest – not its boss alone, as Trump likes to suggest.
Powell, who initially made Trump the head of the central bank during his first term, is at the top of the Fed for almost a year. The key interest rate of the central bank of the law is currently at a high level of 4.25 to 4.5 percent.
The central bank argues that the labor market in the United States is still robust and inflation is still a little above its long -term target. Therefore, according to the logic, there is no need to reduce the key interest rate at short notice. The central bank is also worried about Trump’s unpredictable trade policy. New and higher tariffs on imports in the US