booming economy? | Cent bank head stubborn, must resign: US Prez to board of governors as Jerome refuses to cut rates

AP Washington

US President Donald Trump called for the Federal Reser­ve’s board of governors to usurp the power of Fed Chair Jerome Powell, criticising the head of the US central bank for not cutting short-term interest rates.

Posting on his Truth Social platform, Trump called Pow­ell “stubborn”. The Fed chair has been subject to vicious verbal attacks by the Republi­can president for months.   If Jerome Powell doesn’t “substantially” lower rates, Trump posted, “The Board should assume control, and do what everyone knows has to be done!”

Two of the 7 Fed governors, Christopher Waller and Michelle Bowman, said on Friday they see the tariffs as having a one-time impact on prices and the job market as most likely softening. As a result, the two dissented at the Fed meeting on Wednesday and pushed for slight rate cuts relative to what Trump was seeking.

Even though Trump, who nominated Waller and Bowman, has claimed the US economy is booming, he welcomed their arguments and what he called their strong dissents. After the Fed announced later on Friday Governor Adriana Kugler will step down next week, Trump said Powell should follow her lead and leave, too. “She knew he was doing the wrong thing on interest rates. He should resign, also!” Trump said on social media.

US tariff temporary: Taiwan President Lai 

The US has imposed a 20% tariff rate on goods from Taiwan, which is considered “temporary” by Taiwanese President William Lai, who expects negotiations to secure a lower rate, Taipei Taiwan reported.

The tariffs on semiconductors, electronics, and information technology products will be determined separately under future US sectoral mea­sures, as per Taipei Taiwan. Taiwan, the US initially proposed a 32% tariff on its goods in April, later cut to 20%. However, Taiwan’s tariff rate exceeds those of competitors like Japan and South Korea, which face a 15% levy. —ANI