President Trump blasted the Federal Reserve and Federal Reserve Chairman Jay Powell after news that interest rates would be cut by a quarter of a point.
“Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!” Trump tweeted Wednesday.
Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!
— Donald J. Trump (@realDonaldTrump) September 18, 2019
The Fed announced Wednesday that it will now target short-term rates in range between 1.75% and 2%, but Trump has been openly advocating interest rates to be chopped down to zero to compete with the rates of other countries.
Trump has vocally broken with the precedent of White House officials not commenting on the Fed’s monetary policy. He has attacked Powell a number of times over Twitter and in comments to reporters.
“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet,” Trump tweeted last week.
“…The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of ‘Boneheads,’” he added.
….The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads.”
— Donald J. Trump (@realDonaldTrump) September 11, 2019
The central bank was divided in its Wednesday vote, with three officials dissenting from the decision and two disagreeing with the move to cut rates. On the other hand, Federal Reserve Bank of St. Louis President James Bullard said he wanted a larger cut.
Eight unnamed Fed officials, who are not necessarily on the monetary policy committee, said they thought the Fed would once more lower rates this year or the next.
