The Trump Administration is showing no sign that it will lessen its criticism of Federal Reserve chairman Jerome Powell, with Commerce Secretary Howard Lutnick saying that the Fed chairman was torturing the US.
On CBS Face the Nation, Mr Lutnick echoed US President Donald Trump's sharp tone when talking about the Federal Reserve chairman, saying that he was doing the “worst job”, among other things.
“I don't know why he's torturing America this way,” he said, referring to Mr Powell's decision to not cut interest rates.
CBS anchor Margaret Brennan pointed out to Mr Lutnick that Mr Powell does not unilaterally set the interest rates, but rather, a committee consisting of federal governors and the heads of central bank offices throughout the US.
Later in the show, Democratic Congressman Jim Himes condemned Mr Lutnick for his choice of words.
“He said, 'Jay Powell is torturing the American people',” lamented Mr Himes, saying that Mr Lutnick was putting Mr Powell's physical safety at risk.
“What you just saw was a masterclass by a huckster and a con man who uses words like torture that are very, very dangerous words,” he continued.
Mr Lutnick's decision to use words like “torture” when referring to the US Federal Reserve chairman are the latest in a series of condemnations of Mr Powell from the Trump White House.
It also comes after Mr Trump's own comments on Tuesday, when he denied reports that he intends to fire Mr Powell, a move that is largely unprecedented and would likely rock the markets.
“I talked about the concept of firing him. I said, 'what do you think?' Almost every one of them said I should, but I'm more conservative,” he said before a meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa.
When asked if he would rule out the idea, Mr Trump said: “I don't rule out anything but I think it's highly unlikely unless he has to leave for fraud.”
That same day, Mr Trump continued to insist the Fed's current target rate of 4.25 per cent to 4.50 per cent should be three points lower.
During his appearance on Face The Nation, Mr Lutnick said he was angry that the US “had the same interest rates as Gabon,” and echoed Mr Trump's call for lower rates.
“Whether [President Trump] decides to let Jerome Powell stay on the job or not, I'll leave that to Donald Trump,” Mr Lutnick explained, while addressing speculation that Mr Trump might fire Mr Powell.
Under the Federal Reserve Act, a president can remove a Federal Reserve official only “for cause”. This means the White House must show a Fed official or its chairperson had committed an act of malfeasance or neglect of duty. A recent Supreme Court ruling upheld the notion that legal reasoning the White House has been used to fire officials at other independent federal agencies does not apply to the Fed.
But the White House in recent weeks has launched a new phase of attack on the Federal Reserve, accusing Mr Powell of mismanaging the central bank given the ballooning renovation costs of its headquarters.
Asked if Mr Powell should be investigated, Mr Trump said: “Well, I think he's already under investigation. He spent far more money than he was supposed to rebuilding.”
Mr Powell's term as Fed chairman expires next May.
Reports in recent days had suggested that Mr Powell had managed to convince Mr Trump to lessen his threats to remove the Fed chairman before his term expires.
While addressing those reports on Sunday, Mr Lutnick instead boasted of what described as Mr Trump's transparency.
“When he thinks something he says it,” Mr Lutnick added.
The US Federal Reserve Board has not yet responded to the The National's requests for comment on this story.
Kyle Fitzgerald contributed to this report.
What is type-1 diabetes
Type 1 diabetes is a genetic and unavoidable condition, rather than the lifestyle-related type 2 diabetes.
It occurs mostly in people under 40 and a result of the pancreas failing to produce enough insulin to regulate blood sugars.
Too much or too little blood sugar can result in an attack where sufferers lose consciousness in serious cases.
Being overweight or obese increases the chances of developing the more common type 2 diabetes.
UAE currency: the story behind the money in your pockets
SPECS
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Where%20the%20Crawdads%20Sing
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EOlivia%20Newman%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Daisy%20Edgar-Jones%2C%20Taylor%20John%20Smith%2C%20Harris%20Dickinson%2C%20David%20Strathairn%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
MATCH INFO
West Ham United 2 (Antonio 73', Ogbonna 90 5')
Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')
TEAMS
EUROPE:
Justin Rose, Francesco Molinari, Tyrrell Hatton, Tommy Fleetwood, Jon Rahm, Rory McIlroy, Alex Noren, Thorbjorn Olesen, Paul Casey, Sergio Garcia, Ian Poulter, Henrik Stenson
USA:
Brooks Koepka, Justin Thomas, Dustin Johnson, Patrick Reed, Bubba Watson, Jordan Spieth, Rickie Fowler, Webb Simpson, Tiger Woods, Phil Mickelson, Bryson DeChambeau ( 1 TBC)
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
