Investing.com -- U.S. President Donald Trump continues to press Jerome Powell and the Federal Reserve to cut interest rates, as inflation data remains subdued despite his aggressive tariff policy. While Trump continues to press for lower rates, he said he won’t fire Powell.
"We’re going to spend $600 billion a year because of one numbskull that sits here," Trump said. "Cut your rates now, there’s no inflation."
Trump suggested the Fed cut interest rates by two full percentage points, which could save the U.S. up to $900 billion. This is larger than his past ask for a one percentage point cut from the Fed. The current Fed funds rate is at 4.25-4.5%.
The comments from the president follow the release of CPI and PPI data this week, which were both lower than economists had expected.
“The fake news is saying, ‘Oh, if you fired him, it would be so bad, it would be so bad.’ I don’t know why it would be so bad, but I’m not going to fire him,” Trump said at a bill signing at the White House on Thursday.
“We call him ‘Too Late,’ right?” Trump joked, referring to the nickname he has given Powell.
Trump added that if inflation were to pick up in the future, he would have no problem with the Fed raising rates.
“Let’s say there was inflation. In a year from now, raise your rates. I don’t mind, raise your rates. I’m all for it. I’ll be the one to be calling you,” Trump said. “He’ll be too late for that too.”