Trump versus the Fed

[justaprogressive]

Fed Chair Jay Powell, testifying before the House Financial Services Committee Tuesday, defended last week's unanimous Fed decision to keep interest rates unchanged, citing both the core inflation rate of 2.6 percent in May, well above the Fed's 2 percent target, and the risk of higher prices driven by tariffs.

"The effects [of tariffs] on inflation could be short lived—reflecting a one-time shift in the price level," Powell said. "It is also possible that the inflationary effects could instead be more persistent."

Powell's criticism of tariffs, a Trump favorite, will further enrage the president. On the eve of Powell's appearance, blasting the Fed Chair on Truth Social, Trump wrote, “‘Too Late’ Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate ... I hope Congress really works this very dumb, hardheaded person, over."

Last week, correctly anticipating that the Fed would hold rates steady, Trump was scathing. Speaking at a White House press event, Trump said the U.S. has collected $88 billion from tariffs and has no inflation. But "we have a stupid person, frankly, at the Fed," Trump said. “I call him every name in the book trying to get him to do something,” Trump added. “I’m nasty, I’m nice—nothing works.”

“Am I allowed to appoint myself at the Fed?” he asked. No, he's not. The Supreme Court recently made clear that the Fed Chair is one of the few term appointees at independent agencies who the president can't fire.

https://prospect.org/politics/2025-06-25-trump-powell-federal-reserve-crypto-inflation/

[rampartd]

1. $88B from tariffs? 88 ft flag poles?

i will never heil that mf!

[Walleye]

2. We need to find out if he is getting a cut of that 88 billion. Because we sure aren't