Trump: Jerome Powell, the stubborn idiot, must now significantly cut interest rates

US President Donald Trump said on Friday that if Federal Reserve (Fed) Chairman Jerome Powell continues to refuse to lower interest rates, the Fed Board of Governors should take over.

"Jerome Powell, the stubborn idiot, needs to lower interest rates significantly now. If he continues to refuse, the Board of Governors should take over and do what everyone knows needs to be done!" Trump wrote in a post on his Truth Social social media site.

The US central bank kept interest rates unchanged on Wednesday , with comments from Federal Reserve Chairman Powell dampening market hopes for rate cuts in September, Reuters reported. Powell argued that the decision was influenced by the uncertain economic outlook and the still unclear effects of the tariffs.

Trump, who had been pressing for an immediate and significant interest rate cut, reacted angrily.

Wednesday's Fed decision was made by a 9-2 vote, meaning the consensus-driven central bank is split. Two Federal Reserve governors dissented for the first time in over 30 years. (PAP)

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