USA: Trump calls Fed chief Powell “hollowhead” and increases pressure

Washington. US President Donald Trump has once again verbally attacked Fed Chairman Jerome Powell, vaguely threatening to use unspecified measures to force interest rate cuts. Trump called Powell an "idiot" at a White House event.

It's fine for Powell to keep interest rates high or raise them if inflation is rising. But that's not the case, and he might have to "force something," Trump said. He left open what he meant by that.

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The US Federal Reserve's next interest rate decision is scheduled for next Wednesday. However, analysts do not expect the Fed to lower its key interest rate then. It has so far opted for a wait-and-see approach in light of Trump's aggressive tariff policy.

Trump has always been an advocate of low interest rates. He hopes, for example, that this will stimulate economic growth.

Trump reiterated that he would not fire Powell. Legally, that wouldn't be easy, because a US president can't simply dismiss the head of the independent central bank.

Trump nominated Powell for his first term as Fed chair during his time as US president, but subsequently criticized him for raising interest rates. US President Joe Biden later nominated Powell for a second term, which ends in 2026. Trump regularly insults Powell and has already made it clear that he will not renominate the 72-year-old.

RND/dpa