Vice President JD Vance has openly criticized Federal Reserve Chair Jerome Powell for his economic policies, particularly concerning inflation and trade agreements.
What Happened: During an interview with Fox News, Vance expressed dissatisfaction with Powell’s handling of economic issues. According to The Hill, Vance labeled Powell as a “nice guy” but criticized his delayed response to inflation and trade deals. Vance’s remarks echo recent criticisms from President Donald Trump, who has been vocal about his discontent with Powell’s decisions.
“Well, first of all, I think the president is right about Jerome Powell. Jerome Powell, he's a nice guy, but he's been wrong about almost everything. He was way too late in combating the Biden inflation, and now I think he's way too late in actually helping us fight back against some of these ridiculous trade deals that have stolen the wealth of the American people,” said Vance.
On Thursday, Trump likened discussions with Powell to “talking to a wall” and criticized the Fed’s decision to maintain interest rates between 4.25% and 4.5%. Trump pointed out that other central banks, such as the Bank of England and China, have opted to cut rates.
Powell defended the Fed’s stance, stating that the labor market remains strong and inflation is low, allowing for patience in policy adjustments. He also mentioned uncertainties around tariff policies and their potential economic impact. Powell, initially appointed by Trump in 2017, was reappointed by President Joe Biden.
See Also: Forget Rate Cuts This Year, Bank Of America Warns After Powell’s Hawkish Tone
Why It Matters: The Federal Reserve’s decision to keep interest rates steady at 4.25%-4.50% marks the third consecutive pause in its interest-rate policy. The Fed has acknowledged increased uncertainty about the economic outlook. Despite calls for lower rates, the Fed’s decision aligns with expert predictions that it will be among the last central banks to cut rates.
Trump’s criticism of Powell is not new. Previously, Trump claimed to know “much more” than Powell about interest rates. Despite this, Trump has stated he has “no intention” of firing Powell.
Photo Courtesy: Lev Radin on Shutterstock.com
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
