Trump attacks Fed boss Powell for not cutting interest rates

Donald Trump has attacked the head of the US central bank for not cutting interest rates, stating that Jerome Powell's "termination cannot come fast enough!".

The US president took to social media to renew his criticism of Powell ahead of the third interest rate cut this year by European Central Bank (ECB).

On Thursday, it announced that it had reduced the key rate "owing to rising trade tensions".

Trump, who nominated Powell as Federal Reserve chair in 2017 during his first term, wrote that he "is always TOO LATE AND WRONG" on reducing borrowing costs.

Mr Powell said that despite the uncertainty and ructions in the markets, the "US economy is still in a solid position".

For now, he said, the Fed could keep its benchmark interest rate steady "to wait for greater clarity before considering any adjustments".

The Fed's benchmark interest rate is currently set in a range between 4.25% and 4.5%, where it has been since December following a series of rate cuts late last year.

If tariffs push up inflation, as many economists expect, the Fed could decide to hold or even raise rates. Traders on Wednesday kept their bets it will continue to cut rates this year.

But the Fed also has a mandate to maintain maximum employment as well as stable prices.

Should it be caught between rising inflation and a rising unemployment rate, Mr Powell said "we would consider how far the economy is from each goal" and then look at "the potentially different time horizons" for getting prices under control and bringing the unemployment rate down.

"As that great Chicagoan Ferris Bueller once noted, "life moves pretty fast", he added.