AdvertisementAdvertisementPresident Donald Trump, right, and Sen. Dave McCormick, R-Pa., center, look on as Treasury Secretary Scott Bessent, left, speaks at the "Inaugural Pennsylvania Energy and Innovation Event" at Carnegie Mellon University, Tuesday, July 15, 2025, in Pittsburgh. (Photo: AP/Evan Vucci)23 Jul 2025 01:05AM (Updated: 23 Jul 2025 01:06AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST WASHINGTON: US President Donald Trump on Tuesday (Jul 22) said Federal Reserve Chair Jerome Powell would be out of his role in eight months, calling him a “numbskull” for keeping interest rates too high and suggesting political motives behind Fed policy.“I think he's done a bad job, but he's going to be out pretty soon anyway. In eight months, he'll be out,” Trump said during a meeting at the White House with Philippine President Ferdinand Marcos Jr.Powell’s term as Fed chair runs until May 15, 2026. Trump did not explain why he believed Powell would leave in mid-March, roughly eight months from now, and Powell has repeatedly stated he will not resign early.RATE PRESSURETrump has repeatedly criticised Powell for maintaining elevated interest rates despite cooling inflation, arguing they are hindering consumer access to credit.On Tuesday, he reiterated that interest rates should be three percentage points lower than the current level.“Our economy is so strong now, blowing through everything. We're setting records,” Trump said. “But you know what? People aren't able to buy a house because this guy is a numbskull. He keeps the rates too high, and is probably doing it for political reasons.”The Federal Open Market Committee meets next week and is widely expected to keep rates steady in the 4.25% to 4.50% range, as officials assess the impact of tariffs on inflation and employment.What happens if Trump fires Fed chair Jerome Powell?Trump says he's not planning to fire Fed's PowellDollar drops in choppy trading as Trump denies plans to fire Fed's PowellTREASURY SLAMS FED SPENDINGAlso at the meeting, Treasury Secretary Scott Bessent criticised the Fed’s non-monetary activities, calling for a “big internal investigation” into its operations.White House officials have questioned the Federal Reserve's US$2.5 billion renovation of two Washington buildings, which they claim are overly lavish.“The Fed has had big mission creep, and that's where a lot of the spending is going,” Bessent said. “That’s why they’re building these new, or refurbishing these buildings, and I think they have got to stay in their lane.”The Fed has defended the renovations, saying they are necessary due to significant safety and efficiency issues in the ageing buildings.Source: Reuters/fsSign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST