Trump Attacks Jerome Powell Again, Dubs Him "Too Late Powell"

US President Donald Trump has again criticized Federal Reserve (Fed) Chairman Jerome Powell over interest rate policy.

output: Jakarta, Pundi - US President Donald Trump has again criticized Federal Reserve (Fed) Chairman Jerome Powell over interest rate policy. In a series of comments delivered via social media, Trump slammed the Fed chair for being too slow to reduce interest rates, which he says could hold back the US economic progress.

"Almost all parties agree that the Fed should cut rates IMMEDIATELY to support our great economy, which is rapidly expanding. Only "Too Late Powell" stands in the way," Trump wrote on X, formerly Twitter.

He added, "They want to see our magnificent economy pour through on Thursday, in GDP numbers, and Factor in jobs, employment and the fact that interest rates are TOO HIGH. "Too Late" Powell is the worst part of the equation. They will cut rates, but they are "too late"!"

Trump Hopes for Looser Monetary Policy

The former president has been a vocal critic of the Fed’s monetary policy. He has repeatedly urged the central bank to lower interest rates more quickly and to adopt a looser monetary policy.

Trump believes that a lower interest rate policy will accelerate economic recovery and boost investment. His comments come amid an uncertain economic outlook, with some economists expecting a slowdown in the second half of the year.

A Rising Trade Tension

On the other hand, Jerome Powell has a different perspective on the current economic conditions. In his last speech at the Federal Open Market Committee (FOMC), Powell mentioned tariffs imposed by the Trump administration as one of the reasons inflation has not decreased as quickly as expected.

According to him, the trade tensions generated by the tariff policy throughout last year have created economic uncertainty, impacting inflation.

Furthermore, the Producer Price Index (PPI) inflation data for July, recently released by the Bureau of Labor Statistics (BLS), showed a decline to 2.4% from the previous month, falling short of market expectations.

This data indicates that inflationary pressures are indeed easing. However, the Fed usually considers many macroeconomic factors, including the labor market, consumer spending, and inflation in making decisions regarding interest rates.

The Impact of Interest Rates on Cryptocurrencies

Financial markets are highly sensitive to the Fed’s interest rate policy as it has a direct impact on asset prices, including cryptocurrencies. A decrease in interest rates usually has a positive impact on cryptocurrency prices as investors tend to increase their allocations to digital assets, which increases liquidity in the market.

Investors and market analysts are closely watching for any signals from the central bank regarding interest rate policy. If the Fed decides to cut interest rates further at its next meeting, it could trigger price increases for various assets, including Bitcoin (BTC), Ethereum (ETH), and other digital assets.

Trump’s fresh criticism of Powell may also factor into upcoming monetary policy decisions by the central bank. As the House of Representatives prepares to vote on a bill to remove President Biden’s authority to impose tariffs on China, the economic and political implications of tariffs are again under scrutiny.