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Investing.com-- U.S. President Donald Trump said on Tuesday that interest rates in the country should be at least “two to three points lower,” while keeping up his criticism of Federal Reserve Chair Jerome Powell.
Trump’s comments came just hours before the Fed Chair will testify before Congress on Tuesday.
In a social media post, Trump said “I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come,” referring to Powell and his reluctance to cut interest rates as demanded by the president.
Trump compared the Fed to the European Central Bank, claiming that Europe “had 10 cuts, we have had ZERO.”
He claimed that interest rates should be at least two to three points lower, which “would save the USA 800 Billion dollar Per Year, plus.”
“If things later change to the negative, increase the Rate,” Trump said.
The president’s latest tirade against Powell comes as he keeps up his calls for lower U.S. interest rates, largely in contrast to the cautious stance put forward by the Fed.
The central bank had last week kept interest rates steady, with Powell warning that Trump’s tariffs could increase inflation and give the central bank even less impetus to cut rates further.
The central bank cut interest rates by a total 1% in 2024, but flagged a largely cautious stance on cutting rates in 2025 and 2026.