Washington – House speaker Mike Johnson said that he understands President Trump’s frustration with Federal Reserve President Geom Powell, but reiterated that he is uncertain about what he is “legal parameters”. If the president fired it,
Mr. Trump has excluded Powell, accused him not to work quickly to reduce interest rates – Fed has currently set A. Benchmark rate 4.25% to 4.5%, where it remains throughout the year. The President has argued that the cost of borrowing will increase the economic growth, but the central bank is concerned that the slashing rates may make inflation worse. Powell has also cited the uncertainty of the economic effects of Mr. Trump’s tariff as another factor. Mr. Trump has brought the idea of firing Powell, but later said that it is “is”highly unlikely” he would.
Louisiana Republican, Johnson, told Major Garat, CBS News chief Washington correspondent Major Garat, “I am confident that they should reduce interest rates, and it is actually a lot of power to be held in the hands of a person or board.” Powell’s decision to increase or reduce interest rates is not alone. Eight times a year, the Federal Open Market Committee, including 12 members, has votes on monetary policy.
Mr. Trump nominated Powell as a fed chair during his first term, and the then President Joe Biden later nominated him for a second four -year term, which was ending in May 2026.
“This is now a rocky road between him now and then,” Johnson said. “I am confident that a lot of economists would say, when the economy is hot, when it is running – and we are increasing a lot of great development – it’s not time for you to reduce interest rates. But I think the desperate time calls for desperate measures.”
Johnson said that reducing interest rates will help solve the housing strength crisis.
“If you reduce rates only a small percentage, you can solve that problem,” he said. “I think it will be a big thing for the economy and I think they should duly consider. It will save a lot of money to the nation and give more opportunities to more people.”
Johnson commented with Mr. Trump a day before Federal Reserve visit In Washington.
