Trump slams Powell and Fed ahead of meeting, calling for & # 39; big & # 39; rate cuts
President Trump renewed his criticism of the Federal Reserve ahead of the central bank's Federal Open Market Committee meetings Tuesday and Wednesday.
Fed chairman Jerome Powell and his colleagues "don't have a clue," Trump tweeted Monday morning. He said he wants to see a "big" fall in interest rates.
"China's producer prices have shrunk most in three years due to China's major devaluation of their currency, coupled with monetary stimulus. The Federal Reserve doesn't see?" Trump wrote on Twitter. "Will the Fed ever enter the game? Dollar strongest ever "Really bad for exports. No inflation … Highest interest rate."
The Fed is expected to announce an interest rate cut Tuesday at 2 pm EST after the meetings.
FILE – This February 5, 2018, file photo shows the seal to the board member of the United States Federal Reserve System on the Ground at the Marriner S. Eccles Federal Reserve Board Building in Washington. (AP Photo / Andrew Harnik, File)
"Because of the Federal Reserve, the United States pays a much higher interest rate than other competing countries," he continued. can't believe how lucky they are that Jay Powell and the Fed have no clue. And now, on top of it all, Oil struck. Big interest rate drop, stimulation! "
Last week, Trump asked for zero or negative interest rates, such as The Eu the central bank announced in a new stimulus round.
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The US Federal Reserve lowered the federal funds reference in July for the first time in nearly a decade, citing "global economic outlook as well as curbing inflationary pressures." Fed officials did not say they expected further cuts, but warned that it was not the beginning of an aggressive interest rate cut series.
Since then, however, global economic conditions have deteriorated significantly: Production contracted in the United States for the first time in three years; the spread between two-year and 10-year government yields was reversed, a regular interferer with an imminent recession, and employment data in the US suggested that the labor market was becoming softer, amid rising US-China trade tensions.
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FOX Business & Megan Henney contributed to this report.
