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Leavitt suggests Fed Reserve isn’t independent
In a recent statement, the White House press secretary implied that the Federal Reserve may not function with the level of independence traditionally expected. This revelation coincides with ongoing discussions about the trade implications stemming from the current economic climate.
President Trump addressed the media on Tuesday, affirming that he has “no intention of firing” Federal Reserve Chair Jerome Powell. This statement came just a day after Trump referred to Powell as a “major loser” while advocating for faster interest rate cuts from the central bank. During a session with reporters in the Oval Office, Trump expressed that he never considered firing Powell, attributing sensational interpretations to media coverage. Nonetheless, he reiterated his call for the Fed to lower interest rates, which remain relatively high following a series of rate hikes aimed at curbing inflation.
“This is a perfect time to lower interest rates,” Trump remarked. “If he doesn’t, is it the end? No, it’s not. But it would be good timing.”
In the previous week, Trump took to social media to criticize Powell, stating that the chair is “always TOO LATE AND WRONG” and expressing an urgent desire for his “termination” to come swiftly. This comment has sparked speculation that he might attempt to remove Powell before the latter’s term concludes next year.
This is a breaking story. It will be updated.
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