Donald Trump has repeatedly slammed the Federal Reserve for refusing to listen to his demands to make dramatic cuts to the interest rate. Furthermore, the US president has stated that he would not prevent Jerome Powell from leaving the post of the chairman of the Federal Reserve if the latter wanted to resign.
The US president turned to Twitter on Wednesday with another call to the Federal Reserve to cut down the interest rate and substantially lengthen the term.
In late-July, Trump accused Federal Reserve’s chairman Jerome Powell of “letting the market down” amid the US’s economic battles with China, the EU and other countries around the world by refusing to announce a new “lengthy and aggressive” rate-cutting policy.
Prior to that, the US president said he believed he had the authority to fire Powell, despite the fact that the Fed is formally a separate entity from the government, and that Powell’s terms as chairman don’t expire until 2022.
Created in 1913, the Federal Reserve is charged with governing the US financial system, its primary focus being monetary policy. The Fed acts as a ‘bank for banks’, mandating that they keep some of their reserves in their vaults, and lending money to banks as a last resort, as well as determining interest rates.