Key Takeaways
- Former US President Donald Trump has publicly called for the resignation of Federal Reserve Chair Jerome Powell, citing Powell's handling of interest rates.
- Trump expressed approval for the possibility of India ceasing its oil purchases from Russia, calling it a "good move" if true.
- The call for Powell's resignation follows the early departure of Federal Reserve Governor Adriana Kugler, a Biden appointee, which Trump highlighted as a precedent.
Former US President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, demanding his resignation. Trump stated on Truth Social that Powell should step down, similar to how Adriana Kugler, a Biden appointee and Federal Reserve Governor, recently resigned. Trump asserted that Kugler "knew he was doing the wrong thing on Interest Rates," implying Powell's policies are detrimental. Kugler's resignation is effective August 8, creating an early vacancy on the Fed's board and potentially giving Trump an opportunity to influence the central bank's leadership if he were to return to office.
In a separate development, Trump commented on India's potential shift in energy policy. He stated, "I hear India might stop buying oil from Russia — if that’s true, it’s a good move. We’ll see how it plays out," as cited by ANI. This remark highlights the geopolitical implications of energy trade and the ongoing international scrutiny of nations' economic ties with Russia.
Trump's consistent criticism of Powell centers on the Federal Reserve's interest rate decisions, which he believes have negatively impacted the US economy. He has previously accused the Fed of playing "games" with interest rates, suggesting they were lowered before the presidential election to influence the outcome. Trump has also claimed the US economy is "BOOMING" despite the Fed's actions. The former president has advocated for significantly lower interest rates, suggesting they should be around 1% or 2%.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.