Asia FX dithers as dollar steadies before Powell speech; yen muted after CPI data
Investing.com -- U.S. President Donald Trump sharply criticized Federal Reserve Chairman Jerome Powell on Thursday, a day after the central bank voted to maintain current interest rates.
Trump posted on his social media platform: "Jerome ’Too Late’ Powell has done it again!!! He is TOO LATE. Put another way, ’Too Late’ is a TOTAL LOSER, and our Country is paying the price!"
The Federal Open Market Committee decided in a 9-2 vote to keep the federal funds rate between 4.25% and 4.5%. This decision faced opposition from Governors Michelle Bowman and Christopher Waller, who have both supported beginning monetary easing.
"[W]e suspect the dissents reflect at least some genuine disagreement among Committee participants as they grapple with the appropriate stance of monetary policy amid the stagflationary impulse from higher tariffs," Wells Fargo (NYSE:WFC) economist Sarah House wrote in a client note.
The split vote marks the first time since late 1993 that multiple governors have voted against a rate decision.
For some time, Trump has been advocating for the Fed to reduce the benchmark rate.
"Our current forecast looks for the FOMC to cut the fed funds rate by 25 bps at its September, October and December meetings, with risks skewed toward pushing back the timing of those cuts.
We intend to adjust our fed funds forecast, if necessary, after the dust has settled following Friday’s employment report," House added.