Tensions continue between US President Donald Trump and Chairman Jerome Powell over interest rates. Trump frequently shams Powell and accused him of delaying his interest rates.
Following the inflation numbers released hours ago, Trump has created a new post about his true social account, with Fed Chairman Powell again saying that interest rates should be reduced.
As the feud between the two continues, Trump has also announced that he is considering filing a lawsuit against Powell over the Federal Reserve building costs. At this point, Trump said he is considering allowing a massive lawsuit against Powell, and blames her for “bad” mismanagement of the Fed’s building renovation.
“Powell, who is always behind, has to cut interest rates now.
The damage he did because he was always too late is immeasurable. . . . Luckily, the economy is so good that it defeated Powell and his satisfied board. But I am considering allowing a major lawsuit against Powell for his miserable and completely incompetent work when overseeing the construction of the Federal Reserve System. He could have done it for $50 million, but he did work for $3 billion.
As you may remember, Trump personally inspected renovations and construction works that could be subject to lawsuits when he visited the Fed last month.
What will the Fed do in September?
July inflation data was released hours ago, and the data further raised expectations for a September Fed rate cut.
Nick Timiraos, a reporter for the Wall Street Journal, known as a Fed spokesman, issued a statement after the data arrived, claiming that the Fed would likely not be able to achieve that through the interest rate meeting in September without cutting.
According to Timilaos, if inflation was high today, the possibility of interest rate cuts in September would have been off the table. However, I’m not saying there’s no inflation, but it’s not at a level that would hinder interest rate cuts in September.
“Following the July employment report, interest rate reduction standards have changed.
Interest rate cuts in September may have been suspended by high CPI figures announced today.
The July CPI was not an inflation-free read, but it wasn’t enough to stop the September cut.
Following July inflation data, the probability that the Fed will cut 25 basis points in September is 94.2%.
*This is not investment advice.
