President Donald Trump assailed the Federal Reserve’s approach to bank regulation and accused Chair Jay Powell of fumbling the fight against inflation, while refraining from directly commenting on interest rates.
“The Fed has done a terrible job on Bank Regulation. Treasury is going to lead the effort to cut unnecessary Regulation, and will unleash lending for all American people and businesses,” Trump posted Wednesday on his social media site.
Trump commented after the Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 4.25%-4.5%. The president wrote “Jay Powell and the Fed failed to stop the problem they created with Inflation,” but did not mention the rate decision.
A Fed spokesperson declined to comment on Trump’s post.
The president blamed inflation on the Fed’s supposed focus on “DEI, gender ideology, ‘green’ energy, and fake climate change.” Trump’s first 10 days in office have been consumed by efforts to root out diversity, equity and inclusion offices and climate initiatives from the federal government.
Barr departure
Vice Chair for Supervision Michael Barr said in early January that he plans to step down from his position as the Fed’s top banking cop, avoiding a potential fight with Trump over the role and raising questions about the future of a landmark bank-capital proposal.
Barr is preparing to depart the position on Feb. 28, unless a successor is confirmed earlier.
He plans to continue to serve as a member of the Fed’s board of governors.
Trump said earlier this month that a replacement for Barr would be announced “soon.”
