Gavin Newsom Translates Trump’s Interest Rate Rant at Saudi-US Investment Forum
California Governor Gavin Newsom has offered a sharp critique of President Donald Trump’s recent comments on the economy. This exchange took place during a U.S.-Saudi investment forum held at the Kennedy Center, where Trump delivered an extended rant about interest rates.
Trump’s Rant on Interest Rates
During his over-hour-long speech, President Trump threatened Treasury Secretary Scott Bessent with termination if the Federal Reserve does not reduce interest rates. He emphasized, “The rates are too high, Scott. If you don’t get it fixed fast, I’m going to fire your a–.” This was part of a broader discussion, where Trump suggested Bessent had prevented him from firing Federal Reserve Chair Jerome Powell.
Impacts of Economic Policy
The current economic landscape has been challenging. With a softening job market, escalating living costs, and persistent inflation, Newsom seized the opportunity to address Trump’s comments. He reposted a clip from Trump’s speech on X, stating, “Translation: the economy isn’t bad enough, let’s speedrun a recession!”
- Trump has continuously pressed for lower interest rates, believing they will stimulate economic growth.
- The Federal Reserve had previously cut rates in September and October but remains cautious about deeper reductions.
- Inflation rose to 3 percent in September, surpassing the Fed’s target of 2 percent.
Fed Response to Economic Concerns
In response to pressure from Trump, Fed Chair Jerome Powell clarified that a rate cut in December is not guaranteed. Powell underscored the need for careful consideration before making any swift changes to interest rates.
Trump’s Criticism of the Fed Chair
Trump’s criticism of Powell has escalated. He accused the Fed chair, whom he appointed in 2017, of having “mental problems” and being “grossly incompetent.” The former president is actively evaluating candidates to succeed Powell, whose term is set to end in May 2026.
Public Sentiment and Approval Ratings
Trump’s approval ratings have seen a decline, particularly regarding his handling of economic issues. Recent polling from Ipsos/Reuters revealed that only 26 percent of Americans approve of his approach to the high cost of living. His overall approval rating has fallen to 38 percent, marking a low point since his return to office.
The growing tension over economic management signals a critical moment for Trump and his administration as they navigate public scrutiny and potential policy changes.
