Trump Continues Assault On The Fed After Overseas Rate Cuts

trump11 sept 07aug19

On the heels of interest rate cuts by central banks in India, New Zealand and Thailand, President Donald Trump continued to urge the Federal Reserve to lower rates more aggressively in a series of posts on Twitter on Wednesday.

Trump accused the Fed of incompetence, claiming the U.S. central bank refuses to admit its mistake of raising rates too fast over the first two years of his administration.

"They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW," Trump tweeted. "Yield curve is at too wide a margin, and no inflation!"

"Incompetence is a terrible thing to watch, especially when things could be taken care of sooo easily," he added. "We will WIN anyway, but it would be much easier if the Fed understood, which they don't, that we are competing against other countries, all of whom want to do well at our expense!"

Trump denied that his escalating trade war with China is negatively affecting the U.S. economy and suggested the Fed is the only thing stifling growth.

"We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege," Trump tweeted.

He added, "Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!)."

Last week, the Fed lowered its target range for the federal funds rate by 25 basis points to 2 to 2-1/4 percent, although subsequent remarks by Fed Chairman Jerome Powell suggested the move may not be the first in a series of rate cuts.

Trump predictably lashed out at the Fed chief in a series of posts on Twitter, declaring, "As usual, Powell let us down."

(Photo: Michael Vadon)

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