- Karoline Leavitt criticized excessive rates of interest, calling them a significant hurdle for Trump’s agenda.
- Trump’s handwritten observe slammed Jerome Powell, urging a charge reduce to 1% or decrease.
- When pressed on why Powell hasn’t been fired, Leavitt mentioned that call rests with the president.
White Home Press Secretary Karoline Leavitt didn’t maintain again on Monday, calling the Federal Reserve’s present rates of interest a “important downside” for the Trump administration’s coverage efforts—at the same time as inflation tendencies decrease. Regardless of the cooling costs, she made it clear: excessive borrowing prices are nonetheless very a lot in the best way.
To actually drive the purpose house, Leavitt held up a printed copy of a handwritten observe from President Donald Trump to Fed Chair Jerome Powell. And yeah, it was classic Trump. The observe learn:
“Jerome ‘Too Late’ Powell, and his whole Board, ought to be ashamed of themselves for permitting this to occur to america. They’ve one of many best, but most prestigious, jobs in America, they usually have FAILED… We ought to be paying 1% Curiosity, or higher!”
The message underscored Trump’s rising frustration with Powell, whom he’s criticized earlier than—however this time with a pointy private jab and a transparent demand for charge cuts.
So… Why Not Fireplace Him?
When requested straight why President Trump hasn’t simply fired Powell, Leavitt deflected barely. “It’s query and one you possibly can ask the president,” she mentioned. “That’s a call for him to make.”
It’s price noting: firing a sitting Fed Chair isn’t precisely simple. The central financial institution operates independently, and whereas the president can appoint the chair, eradicating them mid-term with out simply trigger would probably spark a authorized and political firestorm.
Nonetheless, the strain marketing campaign appears to be escalating. With Trump eyeing looser financial coverage to juice the financial system earlier than the subsequent election cycle, the conflict with the Fed may get even louder.