United States (US) President Donald Trump took the opportunity to lash out further at Federal Reserve (Fed) Chair Jerome Powell on Tuesday during a meeting with Philippines President Bongbong Marcos. Having spent weeks normalizing the White House openly criticizing the Fed and attempting to undermine the US central bank’s political autonomy, President Trump is working hard to continue justifying his attempts to circumvent US laws that prevent him from having a say in both who runs the Fed, and what they do.
Donald Trump nominated Jerome Powell to take over the top Fed spot in 2018, and has pivoted into very vocal displeasure with his own selection. The Trump team’s federal budget is set to swell the US deficit by trillions of dollars over the next decade, and the administration is scrambling to find ways to make already-expensive US debt servicing more manageable.
US Treasury Secretary Scott Bessent also chimed in on the topic of the Fed on Tuesday. As recently as Monday, Bessent stated his support for central bank independence (while also suggesting it’s the White House’s job to do a “top-to-bottom” review of the Fed and its operations).
Key highlights
On the Philippines:
I think we will get a trade deal; we’re close to a trade deal.
I don’t mind if Philippines gets along with China.
Getting along with China very well.
Magnets are coming out of China very well.
On Powell:
He’s gonna be out soon, anyway.
He’s got to be out in 8 months.
Economy is strong.
Fed keeps rates too high.
We should be at 1%.
Powell has rates high probably for political reasons.
It is affecting housing.
Rates should be 3 pts lower, maybe more.
Bessent highlights:
Fed should stay in their lane.
Fed should be cutting rates now.
