Federal Reserve Holds Rates Steady Amid Criticism from Trump
President Trump criticizes Fed Chair Powell’s decision to maintain interest rates, while the Fed remains cautious due to economic uncertainties from tariff impacts.
Mr. Trump's repeated pressure on Powell to lower rates could have the opposite effect, noted Will Denyer of investment advisory firm Gavekal Research.
Trump calls Fed Chair Jerome Powell a "fool" for keeping interest rates steady
CBS News·8d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
With the economic tumult, a serious concern has emerged: stagflation.
Trump calls Fed's Powell a 'fool' after central bank holds interest rates steady
Fox Business·8d·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.
Despite showing some signs of weakening during the past year, the labor market remains robust with plentiful jobs and relatively few layoffs.
Applications for jobless benefits fall last week despite uncertainty over tariffs
ABC News·8d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Trump's tariffs have raised concerns about consumer price hikes and inflation, which the Fed combats with higher interest rates.
Trump lashes out at Jerome Powell after Federal Reserve keeps interest rates steady
USA TODAY·8d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Despite showing some signs of weakening during the past year, the labor market remains robust with plentiful jobs and relatively few layoffs.
US applications for jobless benefits fall last week despite elevated uncertainty over Trump tariffs
Boston Herald·8d·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.
Despite showing some signs of weakening during the past year, the labor market remains robust with plentiful jobs and relatively few layoffs.
US applications for jobless benefits fall last week despite elevated uncertainty over Trump tariffs
Associated Press·8d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Still, he argued that if the Trump tariffs stay at their current level, it could delay the Fed from achieving its goals.
Trump: Fed Chair Powell Is a 'Fool' About Interest Rates
Newsmax·8d·Mixed ReliableThis source has a mixed track record—sometimes accurate but also prone to bias, sensationalism, or incomplete reporting.RightThis outlet favors right-wing views.
The concern is that an economy damaged by tariffs will force the Fed into cutting interest rates to stave off job losses, at the risk of driving inflation higher.
Trump’s tariffs put the Fed in a tough spot on interest rates and inflation
NBC News·9d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
The economy is the weakest it’s been in years, and practically every reputable financial institution is warning that hard times are coming if the president doesn’t pump the brakes.
Fed Warns Trump Tariffs May Increase Inflation, Unemployment
Rolling Stone·9d·Mixed ReliableThis source has a mixed track record—sometimes accurate but also prone to bias, sensationalism, or incomplete reporting.LeftThis outlet favors left-wing views.
The Fed's monetary policy isn't entirely to blame for an unaffordable housing market plagued by limited inventory and steep home prices.
How the Federal Reserve Affects Mortgage Rates
CNET·9d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Summary
The Federal Reserve held interest rates steady at 4.25%-4.50% on May 7, amidst ongoing economic uncertainty tied to President Trump's tariff policies. Fed Chair Jerome Powell emphasized that the central bank aims to monitor inflation and employment trends before making any further moves. President Trump slammed Powell as a "fool" for not cutting rates sooner, despite showing resilience in the labor market and an annual inflation rate of 2.4%. Meanwhile, the Bank of England cut its rate to 4.25% due to global growth concerns. The Fed faces pressure from Trump, impacting its decision-making process.
Perspectives
President Trump criticized Federal Reserve Chair Jerome Powell for maintaining interest rates at the current level, claiming he acted 'too late' in addressing economic concerns.
The Fed is currently navigating economic uncertainty due to Trump's tariff policies and is waiting to see how these will impact inflation and growth before making further rate decisions.
Historically, the Fed's independence is crucial for effective monetary policy, allowing them to respond to economic data without political influence.
FAQs
History
- 8d
- 9d