Trump Roasts Jerome Powell As Bitcoin Drops

Another inflation indicator, the Producer Price Index (PPI) came in lower than expected

U.S. President Donald Trump on Thursday threatened to fire Federal Reserve Chairman Jerome Powell if he continues to refuse to cut interest rates despite multiple economic indicators surprisingly showing cooling inflation.

The president’s remarks come as the administration's handling of the economy are set to be a central theme in the upcoming election. Trump said that he's "not happy" with Powell's actions, especially since he feels it could ultimately cost the country billions of dollars.

“We’re going to spend $600 billion a year because of one numbskull,” Trump said at the White House, where he signed a bill terminating California's electric vehicle mandate.

The good news failed to lift bitcoin's price which languished at roughly $108K, as Trump used the data as ammunition against Powell, who has been the target of the president's ire for some time now. Trump previously threatened to fire Powell for not cutting rates, something many say would be unconstitutional. The Fed will reconvene on June 17 and 18 for its scheduled meeting to determine the direction of the country's interest rates.

“We have inflation totally under control,” Trump said. “If we cut our interest by one point…we save $300 billion," he added, referencing how much the federal government would save in interest payments on its outstanding debt if rates were lower. "If we cut it by two points we save… $600 billion.”

The president's comments come as the administration is facing criticism for its handling of the economy. Trump has said that he is optimistic about the economy's prospects, but that he is concerned about the Fed's actions.

"I think the economy is doing very well," Trump said earlier this week. "We have low unemployment, we have great jobs numbers, we have a booming stock market. The only problem is the Fed."

Trump has repeatedly called on the Fed to cut interest rates by "at least one" percentage point at its next meeting later this month. The Fed has already cut rates twice this year, but Trump feels it's not enough.

"The Fed is the only factor that can harm this economic boom," Trump wrote in a tweet on Wednesday. "Everyone else is aligned perfectly, aside from the fact that we are paying too much interest on our debt due to the Fed's policies."

The administration is also facing pressure to provide more aid to farmers who are struggling with low commodity prices and trade tensions with China. Trump said that he is working on a plan to provide additional assistance to farmers.

"I'm going to be doing something very big and very substantial for our farmers," Trump said. "They've been hit very hard by China, and they've been hit very hard by the administration's policies."

The administration is also planning to impose tariffs on another $325 billion in Chinese goods beginning in August, which may further complicate trade relations between the two superpowers.