Trump's Fury: Europe Cuts Rates While Powell Keeps US Economy on High Alert

Europe Cuts Rates, US Holds Firm: Trump Slams Powell's Economic Policy The economic world is watching as Europe aggressively cuts interest rates while the United States Federal Reserve maintains a more conservative approach. This divergence in monetary policy has sparked intense debate, particularly with criticism from former President Donald Trump. Trump has openly accused Federal Reserve Chairman Jerome Powell of "sabotaging" his economic legacy. The European Central Bank has cut interest rates for the eighth time in a year, bringing them down to a mere 2%. This contrasts sharply with the US Federal Reserve, which keeps rates significantly higher at 4.3%. This difference is notable, especially considering that inflation in the US is running below the Fed's target, and the job market is slowing. "This all despite inflation running below the Fed's target and a slowing job market," explains Peter St. Onge, PhD, in a recent video discussing the issue. "Which all prompted Donald Trump to go after 'too late Powell' demanding an immediate full point cut." The video further explores the historical context of the Fed's actions, noting its past practice of slashing rates during economic crises. However, the current situation is deemed unusual given the Fed's historical record of intervening in such instances. The video speculates on the political motivations behind Powell's actions and the potential impact on the upcoming midterm elections. With Powell's term ending next May, the video also discusses Trump's likely replacement, Kevin Warsh, and his potential approach to interest rate policy. The contrasting economic situations and political maneuvering make this a story worth following. The future direction of US economic policy, and the potential for further political conflict, remain uncertain.