US' Trump again presses Powell: 'Fed must lower the rate'

ISTANBUL

US President Donald Trump on Tuesday again pressed the Federal Reserve chair to cut interest rates as soon as possible, repeating the charge that Jerome Powell is “late” to cut rates.

Asserting that there is “No Inflation, and Prices of Gasoline, Energy, Groceries, and practically everything else, are DOWN!!!” Trump wrote on social media: "THE FED must lower the RATE, like Europe and China have done.”

He added: "What is wrong with Too Late Powell? Not fair to America, which is ready to blossom? Just let it all happen, it will be a beautiful thing!"

Consumer inflation in the US unexpectedly inched down to 2.3% in April, from 2.4% in the previous month, according to data released Tuesday.

The market had expected the figure to remain unchanged at 2.4%, as seen in March.

Analysts say these are probably the last inflation figures not to take into account Trump’s policy of raising tariffs on countries worldwide, which have rocked markets for weeks, for both their size and unpredictability.

Last week, the Fed decided not to lower the policy rate, keeping it in the range of 4.25% to 4.5%.

Powell cited the tariffs as a reason for his decision, warning that they are likely "to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment.”

Since last week, Trump has touted trade breakthroughs with Britain and China, leading markets to rise.

Critics say rather than full-fledged deals, the announcements were for frameworks for deals, and much more needs to be done to avoid damaging trade wars.