President Donald Trump this week launched twin attacks on social media against Federal Reserve Chair Jerome Powell and Federal Reserve Governor Lisa Cook.
On Tuesday, Trump said Powell is “hurting” the housing industry as he repeated his call for the Federal Reserve to cut interest rates. Trump’s latest attack comes ahead of Powell’s Friday speech at the annual Jackson Hole central banking symposium.
“Could somebody please inform Jerome ‘Too Late’ Powell that he is hurting the Housing Industry, very badly? People can’t get a Mortgage because of him,” Trump wrote on his Truth Social platform. “There is no Inflation, and every sign is pointing to a major Rate Cut. ‘Too Late’ is a disaster!”
On Wednesday, Trump slammed Cook in a separate post, writing “Cook must resign, now!!!” Trump cited a report that said the head of the U.S. Federal Housing Finance Agency was urging the Department of Justice to probe Cook over alleged mortgage fraud.
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Inflation increased in July and moved further away from the Federal Reserve’s target rate as central bank policymakers assess the health of the economy amid the president’s calls for interest rate cuts.
The Bureau of Labor Statistics last week said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% in July compared with last month, while it was up 2.7% from a year ago.
The monthly figure was in line with the estimate of economists polled by LSEG, while the headline was slightly cooler than the 2.8% expected.
Wholesale inflation increased much more than expected in July, raising concerns about a resurgence of inflationary pressures in the economy.
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The Bureau of Labor Statistics on Thursday released the producer price index (PPI) for the month of July, which showed an increase of 0.9% from the prior month and 3.3% from a year ago. Those PPI figures were much hotter than the forecast of prices rising 0.2% on a monthly basis and 2.5% from last year, which was estimated by economists polled by LSEG.
Meanwhile, the benchmark 30-year fixed mortgage fell to 6.58% last week, down from the previous week’s reading of 6.63% – the lowest level since October, mortgage buyer Freddie Mac said Thursday. The average rate on a 30-year loan was 6.49% a year ago.
While Powell’s Friday speech will have investors looking for hints about his economic outlook and the likelihood of rate cuts, the Fed’s next policy meeting will be held Sept. 16-17.
Fox Business’ Eric Revell, Matthew Kazin and Daniella Genovese, along with Reuters, contributed to this report.
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