Trump and Fed drifted into a collision course just before the heel size – Trump claims to know interest rates better than the central bank

US Central Bank Fed and President Donald Trump They are getting into a collision course on what kind of interest policy in the United States should now be made.

Trump requires big interest rates, but the central bank is unlikely to accept Trump’s wishes.

Today Wednesday Trump and Fed CEO Jerome Powell They can take a measure of each other when the Fed decides on its control height at the end of a two -day high -heeled meeting.

It is almost clear in advance that the FED will not lower its interest rate at its January meeting. That Powell made it quite clear already in his December interest rate meeting.

Trump, on the other hand, has already demanded big interest cuts.

Last week, he said “he knows interest rates better than the Fed deciding on the matter.” Trump also said he wanted to see interest rates down a lot and expecting the Fed to listen to his demands.

Financial Times According to the experts interviewed, Powell must combat the pressure from Trump in order to maintain his credibility in the eyes of the market and to prevent inflation from being unleashed.

Economists warn that presidents’ interference with monetary policy is generally not aware of good.

As a cause The Fed’s reluctance to calculate interest is concerned about inflation, which has not yet been succeeded in pushing to the two percent desired.

When calculating the control interest in December Powell messagethat the rate of interest will be slower than last fall. At that time, the FED lowered its control interest three times, dropping it over a range of 4.25-4.50 %.

This year, the Fedin is expected to decline only twice.

The Fed is concerned that Trump’s planned protective duties and tax reductions will make it difficult to press inflation to the targeted 2 %. Therefore, there is no reason to loosen monetary policy too much now.

Inflation has still been over 2 % in the United States, while economic growth has still been strong.

Presidential The impact attempts on the Central Bank have been convicted of failure, as central banks have been wanted everywhere to give strong power to decide on interest rates in many other countries. This was especially the case after the inflation that had triggered in the 1970s and 1980s was difficult to restrain in an environment where politicians were deliberately intervened in the monetary policy of central banks.

In the past, Powell has hardly tossed his ear for Trump’s comments. On the contrary, the Fed has deliberately sought to reduce tensions between the central bank and the white house.

Now, according to Financial Times, the pressure from Trump may be harder.

Nonetheless, Powell is expected to dodge politics today and to avoid the name of Trump’s name in a post -height conference, as did the previous time.

Already in November, Powell was asked after the presidential election resolved if he would be ready to leave his place if Trump demanded it. Powell announced at the time that he was not ready to resign prematurely because Trump does not have the right to dismiss him.

Indeed, Trump has suggested that he is not trying to combat Powell until his current season ends in 2026.

Trump appointed Powell Fed as CEO of 2017 and Joe Biden For the follow -up period in 2021.

The relationship between Powell and Trump was already tight already in Trump’s last season.