A few months before the election in November 2024, the race for the White House has really begun. No stranger to personal attacks, Donald Trump this time targeted American Central Bank (Fed) President Jerome Powell. His fault? Projecting an easing of monetary policy this year, and thus a cut in key rates, inflation has, in fact, been lower in recent months. Donald Trump speculated on Friday that if the head of the Federal Reserve wants to cut rates in 2024, it is to help Democrats win the presidential election.
” I think he (Jerome Powell, editor’s note) will probably do something to help the Democrats “, said the former Republican president on the conservative channel Fox Business.
” I think he might be trying to lower interest rates to get people elected “, gave more support to the Republican favorite.
The New Yorker’s rhetoric is far from new. When he was president, Donald Trump criticized the Fed for not lowering rates enough for his liking. In fact, he broke the tradition of respect, distance and independence of political authority vis-a-vis the financial institution.
Trump accused Powell of having a profile “policy”
l’Such is Republican hostility to Jerome Powell that he He also assured that, if he himself is re-elected to the White House, he would not renew him as head of the Fed.
The paradox is even more striking given that Donald Trump is behind the 2017 nomination of Jerome Powell to replace Janet Yellen, the incumbent. Secretary of the Treasury of the United States. Joe Biden then renewed his faith in Powell, offering him a second term.
What is the American central bank planning in the coming months? The Fed plans to start cutting its key rate this year, after raising it 11 times to combat inflation. This raises the cost of credit for households and businesses, and therefore discourages consumption and investment to prevent price increases. But if rates remain high for too long, the economy also risks falling into recession. This is why the Fed remains very cautious at this stage.
For his part, Donald Trump believes – in all humility – that, if the markets are doing well, ” Because they think I will be elected “
He also attacked the UAW auto union, which asked to vote for Joe Biden, calling the organization “a Desperate case “
Trump wary of AI
” The liability of this electric car is insane », Republicans insisted, in reference to financial aid put in place by the Biden administration to support the transition of the automobile sector.
” We have what we call gasoline. (…) And that’s what most people want. (Manufacturers) have thousands of electric vehicles for sale that nobody wants to buy “, he declared again.
Playing on the fears of some voters, the former White House host claims that “ The most dangerous thing ever, because there is no real solution “, East” AI, as they call it, is pretty scary ” ” This is a big problem in terms of security “, he insisted.
Under surveillance Saturday for Biden
Joe Biden, for his part, passes the first election test this Saturday in South Carolina. He hopes to build momentum in the Republican camp to counter the meteoric rise of Donald Trump. The current American head of state is almost certain to win this first vote in the race for his party’s nomination. But participation rates will be closely scrutinized: African-American voters had already approved Joe Biden to save his campaign during the primaries in this state in the southeast of the United States before pushing him to the White House. If they ignore it on Saturday, Democrats will have reason to worry.
Several recent polls have shown that black voter support for Joe Biden is collapsing, especially among young people, who believe he was not heard enough during his tenure.
(with AFP)
