Trump demands Fed cut rates by 100 bps

by Ryan Smith22 Aug 2019

President Donald Trump continued his war of words with Federal Reserve Chairman Jerome Powell this week, urging the Fed to cut interest rates by a full percentage point.

Last month, the Fed cut rates for the first time in a decade in response to slowing global growth and uncertainty about Trump’s trade war with China, Bloomberg reported. However, Trump said in a tweet Monday that the Fed – and particularly Powell – were holding the economy back.

“Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to ‘will’ the Economy to be bad for purposes of the 2020 Election,” Trump wrote. “Very Selfish!Our dollar is so strong that it is sadly hurting other parts of the world…”

Trump also demanded the Fed lower rates again.

“The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well,” Trump tweeted. “If that happened, our economy would be even better, and the World Economy would be greatly and quickly enhanced – good for everyone!”

Trump has frequently made the Fed a target of his ire since it raised rates in 2018, according to Bloomberg. He has also frequently singled out Powell for his wrath. Powell, however, told Congress last month that he wouldn’t leave his post even if Trump fired him.

“(The_ law clearly gives me a four-year term, and I intend to serve it,” Powell said.