President Donald Trump in his statement dealt the first blow of the year to the Federal Reserve (Fed) with an emphasis on lowering interest rates.
His speech at the gathering of global leaders at the World Economic Forum in Switzerland that he wants lower interest rates.
Trump demanded interest rates to fall immediately, which he believes will affect the global economy.
In addition, the policy is a sign of pressure on Fed officials and will trigger a struggle in relations with the current US administration.
Previously, Jerome Powell has often been criticized by Trump for considering his monetary policy too conservative.
However, the stock market reacted somewhat positively to the speech with the Dow Jones Industrial Average extending its gains and the 2-year Treasury yield slightly lower.
On the part of policymakers, Jerome Powell and his officials are trying to give the Fed freedom to set its policy.
Powell has often insisted that the central bank will not make decisions based on political considerations and that Trump has no statutory authority over the Fed even though he nominates members of the board of governors.
