Republicans square off in second civil war
U.S. President Donald Trump looks on as Jerome Powell, his nominee to lead the U.S. Federal Reserve moves to the podium at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria/File Photo
The Daily Beast reports President Donald Trump appointee Bill Pulte has picked a side by demanding Fed Chairman Jerome Powell resign.
“Because President Trump has crushed inflation, Fed Chairman Jerome Powell needs to lower interest rates today, and if not Chairman Powell needs to resign, immediately, wrote Pulte. Fannie Mae and Freddie Mac can help so many more Americans if Chair Powell will just do his job and lower rates.”
Powell does not unilaterally determine rates, however. A panel of more than a dozen federal officials manning the Federal Open Market Committee (FOMC) are responsible for setting interest rates, with Powell comprising one vote. Powell oversees the board, however, and announced this week that the Federal Reserve would maintain interest rates between 4.25 to 4.5 percent.
READ MORE: 'Dangerous moment': Analyst says Trump deliberately leaving former aides 'unshielded'
Pulte, who is director of the Federal Housing Finance Agency, soon posted additional tweets calling on Powell to resign. The Daily Beast reports he also used his position as chairman of government-backed mortgage financiers Fannie Mae and Freddie Mac to accuse Powell of harming the housing market.
“He is hurting Americans and hurting the mortgage market, which I am responsible for regulating,” he posted on X.
President Donald Trump joined the attack, posting on TruthSocial that “Powell is the WORST. A real dummy, who’s costing America $Billions!”—despite having nominated Powell for his position at the fed during his first term.
“He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit,” Trump added.
READ MORE: 'Pure chaos': Trump's alterations leave millions of rural Americans stranded
The Daily Beast reports this is only the latest spat between Republicans who are already “embroiled in another civil war over the Trump administration’s handling of the Israel-Iran conflict with figures like Tucker Carlson and Steve Bannon urging Trump to avoid involving the U.S. in another war in the Middle East.”
Critics say reducing interest rates too much can increase borrowing and spark excessive growth that, in turn, can lead to inflation and depreciation of the U.S. dollar’s purchasing power. Powell told reporters at a press conference this week that the fed is leaving rates untouched because the jury is still out on the amount of economic problems Trump’s tariffs could have on the U.S. economy.
“Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs,” Powell said. “And some of it will fall on the end consumer.”
Read the full Daily Beast report at this link.
