Former Vice President Mike Pence has voiced concerns about the Federal Reserve's policies, as former President Donald Trump ramped up his attacks on Fed Chairman Jerome Powell.
Pence stated he has long been concerned about the Fed's dual mandate of maintaining price stability and maximizing employment. He added, "I think the Fed should just focus on dollar stability."
On the other hand, Trump continues his scathing criticism of Powell, demanding interest rate cuts. Trump wrote on social media: "The Fed should quickly LOWER INTEREST RATES to reflect this strength. AMERICA SHOULD BE AT THE TOP. NO INFLATION!!"
Trump also criticized Powell regarding the renovation of the Fed headquarters, stating that if there's evidence Powell misled lawmakers on the issue, he should "immediately resign."
These statements come as the Federal Reserve faces increasing pressure to cut interest rates amid concerns about slowing economic growth. However, the Fed has so far resisted cutting rates, citing that inflation remains above its 2% target.
It's important to understand that these disagreements can impact investor confidence and may lead to market volatility. However, the Fed's decisions are ultimately data-driven, and are unlikely to be directly influenced by political pressure.
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