Trump Goes After Federal Reserve Over Interest Rates

Photo Credit: The Hill

President Donald Trump has taken aim at the Federal Reserve again over interest rates.

Trump sent out several tweets on Monday accusing the Federal Reserve of being behind a cooling global economy, urging them to lower interest rates.

Trump and the Federal Reserve have been at odds for some time now over differing opinions on how America’s central bank should react to economic trends. “Despite a Federal Reserve that doesn’t know what it is doing – raised rates far to fast (very low inflation, other parts of world slowing, lowering & easing) & did large scale tightening, $50 Billion/month, we are on course to have one of the best Months of June in U.S. history..” the president wrote on Twitter. He continued “….Think of what it could have been if the Fed had gotten it right, Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s. Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!”

Trump has called on the Federal Reserve to loosen monetary policy and lower interest rates while the economy is still experiencing growth. Trump argues that they have slowed growth through their decisions, arguing that they should’ve lowered interest rates a while ago.

The markets jumped to record highs last week, when the Federal Reserve announced that interest rates would be left unchanged and hinted that they may lower them in July. The Federal Reserve has also stated that it would step in if the trade situation worsens. Lowering interest rates would likely spur more growth, but tariffs and the US-China trade war present a looming threat to the global economy which may harm the US economy leading up to the 2020 elections.

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