President Donald Trump has slammed Jerome Powell, the Federal Reserve's chair, as "stupid" ahead of the US central bank's interest rate meeting today.
Trump claimed the Fed chair "probably won't cut" the Federal Funds Rate, which determines the cost of borrowing for businesses and citizens in the US.
According to the Republican President, the central bank should have slashed interest rates by at least two percentage points lower than its current level.
Speaking outside the White House, Trump stated: "So we have a stupid person. Frankly, you probably won’t cut today.
Trump has slammed the US central bank's chair
GETTY
"Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune."
This latest statement comes only hours before the Federal Open Mark Committee (FOMC) releases its latest update on interest rates.
Furthermore, the committee's members will confirm where is forecasts policy and several key economic metrics over the next couple of years.
As it stands, market behaviour indicates no probability of a cut at this meeting, with the next move expected to take place in 2025.
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The US Federal Reserve has opted to keep interest rates at their current level and downgraded GDP growth in the face of Trump's tariff threats GETTY Currently, the Federal Reserve is setting its overnight borrowing rate in a range between 4.25 per cent and 4.5 per cent.
Despite inflation easing in the US, Powell has indicated that the Fed is waiting to see the long-term impact of the administration's tariff policies.
Trump has warned that higher rates are costing the United States "hundreds of billions" in financing costs that could be saved if the central bank opted to ease.
He added: "If he’s worried about inflation, that’s OK. I understand that. I don’t think there’s going to be any. So far there hasn’t.
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Powell and Trump recently had a meeting at the White House
REUTERS“But now we have a man that just refuses to lower the Fed rate, just refuses to do and he’s not a smart person.
"I don’t even think he’s that political. I think he hates me, but that’s OK."
Powell and Trump recently had a meeting at the White House, however, little to no information has been revealed about what was discussed.
So far, the Federal Reserve has refused to back down to political pressure to cut interest rates faster than expected, despite the US President's remarks.
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