Trump waiting for debate over controversial Fed speech Thursday, finally calling for tight politics

President Donald Trump weighed into a simmering debate on the Federal Reserve interest rate policy, saying on Friday that the central bank must end its "crazy" tightening moves.

In a series of tweets, the president traveled an unusual controversy stemming from a speech Thursday that New York Fed President John Williams delivered.

Market participants basically took Williams's comment as an indication that the central bank was prepared to reduce rates aggressively, perhaps by half a percentage point. But a Fed spokesman soon returned, causing confusion over where the policy was headed.

Trump said he liked Williams' first statement much better than his others. He urged the Fed to "stop the crazy quantitative tightening" and not "blow it" by stopping "unsurpassed" growth.

However, the President did not understand Williams' comments. Williams never said in the speech that the Fed raised "too fast and too early," as Trump suggested. Instead, Williams said the Fed, when faced with a financial downturn and interest rates close to zero, should cut fast and aggressively.

Trump has long been a Fed critic saying the central bank's interest rate increase since December 201[ads1]5, along with its efforts to reduce its bond holdings, ie "quantitative tightening", has limited economic growth. The Fed has already announced plans to stop the balance, probably in September.

Fearing to build on a number of issues, including global economic downturns, tariffs, Brexit, debt ceiling negotiations and a significant lack of inflationary pressures, markets are expecting the Fed to announce a surcharge at the July 30 meeting. 31.

In his speech, Williams said that when faced with "financial distress", the Fed should "act quickly" and "keep interest rates lower for longer." Comes with similarly bad comments from Fed vice president Richard Clarida and St. Louis Fed President James Bullard, the markets immediately began to price in an even sharper reduction from the Fed than the typical quart point moves and wondered for a possible half-point cut.

However, Williams' office followed a statement stating that his comments were only in connection with an academic study and should not be interpreted as a current political intention.

Friday's traders were awarded a 41% chance of a half-point cut, according to CME's FedWatch tracker.