WASHINGTON, D.C. – On Wednesday the Federal reserve is expected to announce they are not changing interest rates. Keeping those rates the same could fire up President Trump, who is already frustrated with the central bank and their Chair, Jerome Powell.
The President and Powell’s division on handling the economy have continued to balloon since Trump’s return to office. The President believes the Fed not lowering rates is holding back the economy. Powell believes holding the rates the same is keeping the economy from spiking, especially with the President’s ongoing trade war.
Powell has stated even though the job market looks healthy and unemployment is at a relatively low rate, they want to keep interest rates the same at around 4.25- 4.5 percent to see how everything pans out.
The President wanting Powell to step down has divided members even in his own party. Many say the Fed is supposed to be an independent agency despite who is in control at the White House.
Some Democrats like Senator John Fetterman (D- PA) told us Powell has navigated the country through tough times. He adds that Powell’s position, which ends in less than a year, should not be touched.
“He’s brilliant and he’s done an incredible job,” said the Senator. “It would be insane to try to fire him in any way, I’m very clear about that. I’m very supportive of him. He has done a magnificent job, and he has got our economy through the pandemic and [inaudible] kinds of recession and everything. Touch him in any way- they should, they should throw a parade for the guy.”
Powell has stated that if they decide to cut rates, it would most likely happen later this year.
