Trump Torches ‘Knucklehead' Fed Chair — But Denies Reports He's Going to Fire Him US News
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17 minutes ago
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Amid feud with Fed chair Powell, Trump to visit US central bank: Intimidation tactic?
Trump has lambasted Powell repeatedly for not cutting US interest rates more aggressively, calling him a 'numbskull' on Tuesday and musing publicly about firing him read more US President Donald Trump announces Jerome Powell as his nominee to become chairman of the US Federal Reserve in the Rose Garden of the White House in Washington, US, November 2, 2017. File Image/Reuters US President Donald Trump, a robust critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, the White House said, a surprise move that escalates tension between the administration and the Fed. Trump has lambasted Powell repeatedly for not cutting U.S. interest rates more aggressively, calling him a 'numbskull' on Tuesday and musing publicly about firing him. The Republican president, during his first term, nominated Powell to lead the bank but has since soured on his pick over disagreements about interest rates and the economy. Between Trump's stints in office, Democratic President Joe Biden nominated Powell for a second term. STORY CONTINUES BELOW THIS AD Adding fuel to Trump's ire, White House officials have accused the Fed of mismanaging the renovation of two historic buildings in Washington, D.C., suggesting poor oversight and potential fraud. White House budget director Russell Vought has pegged the cost overrun at '$700 million and counting.' White House deputy chief of staff James Blair said this week that administration officials would be visiting the Fed on Thursday but did not say the president would join. In a schedule released to the media on Wednesday night, the White House said Trump would visit the Fed at 4 p.m. (2000 GMT) on Thursday. It did not say whether Trump would meet with Powell. A Federal Reserve official did not respond to a request for comment. 'Intimidation tactic' Initial market reaction to the news of Trump's visit was subdued, with the yield on benchmark 10-year Treasury bonds steady at 4.387% in Asian trading hours and the dollar weakening slightly. Trump's public criticism of Powell and flirtation with firing him have previously upset financial markets and threatened a key underpinning of the global financial system - that central banks are independent and free from political meddling. Treasury Secretary Scott Bessent said on Wednesday the Trump administration was not in a rush to nominate a new chair to replace Powell, whose term as head of the bank ends in May 2026. Bessent has said the administration would likely announce a successor in December or January. 'A little excitement of Trump's visit may have been lost, given Bessent's claims that Trump has no intention of firing Powell,' said Matt Simpson, a senior market analyst at City Index in Brisbane. 'But that doesn't mean Powell is off the hook either. Trump announcing a personal visit to the Fed HQ just days after railing against Powell and the renovation feels less like a policy move and more like an intimidation tactic.' STORY CONTINUES BELOW THIS AD Typically U.S. presidents refrain from commenting on Fed policy altogether in deference to the bank's autonomy, but Trump, whose governing style blasts through political norms, has not followed that example. Since returning to office in January, Trump has attacked institutions from law firms to universities to media organisations in an effort to reshape U.S. society in line with his vision. He has used the same verbal sledgehammer against the Fed, pressuring Powell to cut rates and knocking him for not stimulating the economy further. Pressure to slash rates The Supreme Court in a recent opinion appeared to signal that Trump could not fire Powell other than for cause. Since then, the cost overruns at the Fed's headquarters renovation project have become a focus for the administration in its pressure campaign on the Fed chair. Trump has said he would like the Fed to cut its benchmark interest rate to as low as 1% from the current 4.25%-4.50% target range to reduce government borrowing costs. This would allow the administration to finance rising deficits expected from his spending and tax-cut law. But a Fed policy rate that low is typically a sign of a country in economic trouble. None of the Fed's 19 policymakers sees interest rates falling as low as Trump would like. Their latest projections last month showed most expected the federal funds rate to fall no lower than a 3.25%-3.50% range by the end of next year. STORY CONTINUES BELOW THIS AD Even the most dovish policymakers forecast a fall to 2.25%-2.50% in the next two years. The Fed meets next week and is expected to keep rates in the current range. Investors expect the bank to resume cutting rates in September. As Trump increased pressure on Powell this week, the Fed chief's immediate predecessors, Ben Bernanke and Janet Yellen, said Trump's demands for 'radical' interest rate cuts and threats to fire Powell 'risk lasting and serious economic harm.' In an opinion piece in the New York Times on Monday, they wrote, 'The Fed's credibility - its perceived willingness to make hard decisions based on data and nonpartisan analysis - is an important national asset. It is hard to acquire and easy to lose.'
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First Post
17 minutes ago
- First Post
'It's pure genius': Trump wants to rename 'artificial intelligence' because..
Trump said he dislikes the word 'artificial' in Artificial Intelligence, claiming, 'It's not artificial, it's genius, pure genius.' He gave a curious reason to rename it, saying he doesn't like anything that's artificial. read more President Donald Trump on Wednesday called for renaming Artificial Intelligence at a major AI summit attended by top tech leaders and investors, including AI czar David Sacks. As he laid out his vision for US dominance in the sector, Trump argued that the term 'artificial' should be dropped — and gave a curious reason why. 'Everyone is talking about artificial intelligence. I don't even like the name,' Trump said during his address. 'I don't like anything that's artificial. We should change the name, it's not artificial, it's genius. It's pure genius.' STORY CONTINUES BELOW THIS AD The comment came as Trump unveiled his AI Action Plan, which focuses on rapidly expanding AI development in the US by cutting regulations and boosting exports of American-made AI technology. As part of the plan, Trump proposed rolling back environmental rules to fast-track construction of AI supercomputers and data centers, a move likely to spark backlash due to the industry's high environmental impact. He also linked the initiative to broader political goals, vowing to scrap Biden-era AI policies that evaluate risks based on climate change, diversity, and misinformation. Trump echoed concerns from conservative tech donors, who claim platforms like ChatGPT and Google Gemini are biased against the right. The speech comes days after Trump was criticised for sharing AI-generated content without disclosure. Trump mocks copyright concerns over AI training data President Donald Trump dismissed growing concerns from authors and publishers about their work being used to train AI systems without compensation, arguing that paying for every piece of content would be unrealistic. 'You can't expect a successful AI program if you have to pay for every article, book, or anything you've read or studied,' he said at the summit. Mocking the idea, Trump quipped, ''Gee, I read a book, I'm supposed to pay somebody.' We appreciate the concern, but it's just not practical.' He added, 'Gaining knowledge from a book or article isn't a copyright violation. You shouldn't need to strike a deal with every content creator just to learn from their work.' STORY CONTINUES BELOW THIS AD
Mint
17 minutes ago
- Mint
Why US President Donald Trump wants to rename ‘artificial intelligence'
United States President Donald Trump wants to rename artificial intelligence. The matter came up while he was giving his speech at the 'AI Race Summit' in the national capital of Washington DC late on July 23. While the audience laughed, Donald Trump insisted it was not a joke, he wants to rename artificial intelligence. Why? Because he 'doesn't like artificial anything' and 'cause its not artificial, its genius'. During his speech at the AI Summit, Donald Trump noted these are the 'earliest days of one of the most important technological revolutions in the history of the world', adding that everyone around the globe is talking about AI. He then went on to say that he doesn't like the name, 'Around the globe everyone is talking about artificial intelligence. I find that too artificial, I can't stand it. I don't even like the name. You know, I don't like anything that is artificial so could we straighten that out, please? We should change the name.' After the audience laughed, Donald Trump added, 'I actually mean that. I don't like to name that artificial anything, cause its not artificial, its genius. Its pure genius.' Donald Trump on July 23 signed an executive order outlining a 25-page 'aggressive, low-regulation strategy' aimed at boosting the US' dominance in the AI tech race against China, according to an AFP report. 'America is the country that started the AI race, and as president of the United States, I'm here today to declare that America is going to win it… Winning this competition will be a test of our capacities unlike anything since the dawn of the space age,' Donald Trump said at the event, before signing several executive orders to give components of the strategy additional legal weight. He added, 'Winning the AI race will demand a new spirit of patriotism and national loyalty in Silicon Valley and beyond… for too long many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India and slashing profits in Ireland.' Dubbed as 'America's AI Action Plan', the three main goals are: accelerating innovation, building infrastructure, and leading internationally on AI. The administration is looking at AI advancement as 'critical' to the US maintaining economic and military supremacy, the report added, noting that environmental consequences are sidelined in the planning document. The plan, a collection of over 90 government proposals, calls for sweeping deregulation, with the administration promising to 'remove red tape and onerous regulation' that could hinder private sector AI development.
