Powell Declines Comment on Trump's Demand for Lower Rates

Federal Reserve Chair Jerome Powell declined to respond to President Donald Trump's recent demand for immediate interest rate cuts, emphasizing that he has had no contact with the president and considers it inappropriate to comment on his remarks. Trump's criticism of the Fed's handling of inflation came shortly after the central bank announced it would maintain interest rates at 4.25% to 4.5% for the second consecutive month. He accused Powell of focusing on issues like diversity and climate change rather than addressing inflation, suggesting that these priorities have hindered economic progress. In response to a question about Trump's interference, Powell reiterated the Fed's commitment to its policies, stating that they would continue to align with executive orders as appropriate. The ongoing tension between Trump's administration and the Fed is expected to increase as the president continues to pressure for lower rates. Powell's remarks reflect a steadfast approach to maintaining the Fed's independence amidst political scrutiny.