In a powerful social media post on Wednesday, Vice President JD Vance slammed the Federal Reserve and echoed President Trump’s long-standing criticism of the central bank.
Vance, a staunch supporter of Trump’s economic policies, took to X shortly after the release of the May inflation data, accusing the Federal Reserve of failing to manage inflation and unemployment through interest rate policies.
The timing of Vance’s remarks coincided with the release of the consumer price index (CPI) report, which showed that prices had increased at a slower-than-expected rate in May, a development that prompted renewed criticism of the Fed’s handling of the economy.
Vance’s comments directly targeted Federal Reserve Chairman Jerome Powell and his colleagues for what he referred to as “monetary malpractice.”
In his post, Vance pointed out that while inflation has significantly decreased from its peak under President Biden’s administration, the Federal Reserve has refused to cut interest rates, a move that Trump has consistently argued for.
“The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vance wrote. The Vice President’s remarks reflect the growing frustration among conservatives with the Federal Reserve’s reluctance to take aggressive action to boost the economy and reduce inflation.
The May inflation report, released by the Labor Department, showed a modest rise in prices of 0.1 percent from the previous month, which was slightly below the 0.2 percent increase that Wall Street had anticipated.
The annual inflation rate stood at 2.4 percent, in line with expectations but slightly above the Fed’s target of 2 percent. This slower-than-expected rate of inflation raised new questions about the Fed’s approach to managing the economy, especially since inflation had reached alarming levels under the previous administration.
Despite this progress, Vance argued that the Fed’s current policies were still inadequate to support the American economy, and that immediate action was needed to stimulate growth.
Vance’s criticism mirrors Trump’s long-standing position that the Federal Reserve should be cutting interest rates to spur economic growth. Trump has repeatedly insisted that the central bank should match rate cuts from other central banks, even though those countries have significantly weaker economies than the United States.
“Too late,” Trump wrote on Truth Social last week, expressing his frustration with Powell’s delay in cutting rates. “Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!” Trump’s remarks came after a disappointing report on private sector employment, a signal that the economy could use a boost in the form of lower interest rates.
Trump’s anger with the Federal Reserve reignited last year, as Powell and other officials began signaling that they would likely keep interest rates steady in 2024.
This decision followed concerns about the uncertainty caused by Trump’s tariffs and the strength of the U.S. economy. “The labor market is solid, inflation is low.
We can afford to be patient as things unfold. There’s no real cost to our waiting at this point,” Powell said last month after the Fed kept rates steady following its two-day policy meeting.
However, this view has been sharply criticized by Trump and his allies, who argue that the Fed’s inaction has hindered the economy’s recovery and prevented a more robust growth trajectory.
Vance’s frustration with Powell and the Federal Reserve has been building for some time. Earlier this year, Vance had expressed strong support for Trump’s criticism of Powell, particularly in the context of the Fed’s failure to act quickly enough to combat the inflationary pressures brought on by the pandemic.
“I think the president is right about Jerome Powell. Jerome Powell, he’s a nice guy, but he’s been wrong about almost everything,” Vance said in a previous interview.
“He was way too late in combating the Biden inflation, and now I think he’s way too late in actually helping us fight back against some of these ridiculous trade deals that have stolen the wealth of the American people.”
Vance’s comments reflect the growing dissatisfaction among conservatives with the Fed’s leadership and its ability to effectively manage the economy.
While Powell has acknowledged that the Federal Reserve did not move quickly enough to address inflation in the wake of the pandemic, he has repeatedly defended the central bank’s independence from partisan influence.
Powell has insisted that the Fed must make decisions based on economic data rather than political pressure, and he has refused to heed Trump’s calls for rate cuts during the president’s first term.
Despite this, Vance and many others on the right continue to argue that the Fed has failed to act in the best interests of the American people, particularly when it comes to supporting economic growth through lower interest rates.
The tensions between Trump and Powell have also been fueled by the ongoing trade war between the United States and other countries. Trump has consistently pressured the Fed to support his trade policies by lowering interest rates to make U.S. products cheaper abroad.
This would, in Trump’s view, help reduce the trade deficit and bring more jobs to the U.S. However, Powell and other Fed officials have expressed concern that Trump’s tariffs and the uncertainty surrounding trade policies could have negative long-term effects on the U.S. economy.
Powell warned earlier this year that the tariffs implemented by Trump could lead to higher inflation and slower economic growth, a view that has been sharply at odds with Trump’s economic vision.
Despite the criticism, Vance and other Trump allies continue to defend the president’s economic policies and argue that the Federal Reserve’s reluctance to cut interest rates is a major impediment to the country’s economic recovery.
The debate over interest rates and trade policy will likely remain a central issue as the 2024 election approaches, with Trump and his supporters pushing for more aggressive action to stimulate the economy.
As tensions between Trump and the Federal Reserve continue to escalate, the political landscape surrounding economic policy is becoming increasingly polarized.
Trump’s push for rate cuts is part of his broader economic agenda, which seeks to prioritize American workers and businesses while challenging the global economic system.
Trump’s trade policies, including his tariffs on foreign goods, are aimed at rebalancing trade relationships and ensuring that the U.S. remains competitive in the global market.
Vance’s support for Trump’s economic vision aligns with the broader conservative push for a more nationalist economic approach, one that emphasizes American interests above global cooperation.
While the Federal Reserve is expected to cut interest rates at least twice this year, according to its most recent projections, the slower-than-expected May inflation report may not be enough to prompt an immediate change in policy.
Fed officials have expressed a desire to wait and see how inflation behaves over the summer, particularly in light of the ongoing uncertainty surrounding tariffs and trade policies.
However, many conservatives argue that the Fed’s hesitation is only prolonging the economic recovery and that immediate action is needed to boost growth and job creation.
Trump’s approach to economic policy has been controversial, particularly in relation to his tariffs and trade policies. However, his critics argue that the president’s tactics have failed to deliver on his promises of economic growth and job creation.
The ongoing debate over interest rates, tariffs, and trade will likely continue to shape the political discourse as the 2024 election draws closer, with Trump and Vance standing firm in their belief that the Federal Reserve’s actions have been too slow and inadequate in supporting the U.S. economy.
In conclusion, JD Vance’s critique of the Federal Reserve and his support for President Trump’s calls for interest rate cuts reflect a broader frustration among conservatives with the central bank’s handling of inflation and economic growth.
While the Federal Reserve’s actions have been guided by a desire to ensure stability and avoid political interference, Vance and many others believe that more aggressive measures are needed to stimulate the economy and reduce inflation.
As the 2024 election approaches, these economic debates will continue to play a central role in shaping the future direction of the country’s fiscal and monetary policies, with Trump and his allies pushing for a more aggressive approach to economic growth and job creation.
