Federal Reserve Chairman Jerome Powell will appear before Congress on Tuesday as President Donald Trump continues to push the independent central bank to lower interest rates.
Powell will present the Fed’s Semiannual Monetary Policy Report to the U.S. House Financial Services Committee at 10 a.m. Tuesday in Washington.
The chairman’s remarks before Congress come as Trump hounds Powell to lower interest rates. Last week, the Federal Open Markets Committee kept the central bank’s federal funds rate at a target of 4.25% and 4.5% – further frustrating Trump and his allies.
Trump has called Powell names and said the chairman is “not a smart person.” Trump has also dubbed him “too late” for not cutting rates.
Last week, the president even suggested appointing himself chairman of the Federal Reserve. He also called for aggressive cuts.
“Europe has had 10 cuts, we have had none,” Trump wrote last week. “We should be 2.5 Points lower.”
Over the weekend, the president again skewered Powell, encouraging rate cuts in a lengthy post on Truth Social, the president’s social media platform.
“He could do the biggest and best job for our Country by helping to lower Interest Rates and, if he reduced them to the number they should be, 1% to 2%, that ‘numbskull’ would be saving the United States of America up to $1 Trillion Dollars per year,” Trump said. “I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I’ve tried it all different ways. I’ve been nice, I’ve been neutral, and I’ve been nasty, and nice and neutral didn’t work! He’s a dumb guy, and an obvious Trump Hater, who should have never been there.”
Trump laid out his reasons for a cut.
“We have virtually No Inflation, our Economy is doing really well, and will soon be doing, with the tremendous Tariff Income coming in, and Factories being built all over the Country, better than it has ever done before,” Trump wrote. “If he was concerned about Inflation or anything else, then all he has to do is bring the Rate down, so we can benefit on Interest Costs, and raise it in the future when and if these ‘other elements’ happen (which I doubt they will!).”
The president hinted again at firing Powell, something he suggested earlier but backed off.
“Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his Term ends shortly!,” the president wrote on Truth Social.
In May, the Supreme Court hinted that it wouldn’t allow a president to fire the chairman of the Federal Reserve. The nation’s highest court said the relationship between the president and the Federal Reserve was different from other independent agencies.
“The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,” the high court wrote in an emergency ruling.
