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Trump attacks US Fed, demands rate cut
WASHINGTON, July 20, 2019 (BSS/AFP) – President Donald Trump attacked the
independent US Federal Reserve on Friday, demanding the central bank reverse
course and cut interest rates — something it is widely expected to do this
month.
In another Twitter outburst, Trump called on the Fed to “Correct!” its
overreach.
“We are in a World competition, & winning big,… but it is no thanks to
the Federal Reserve,” he said.
“Had they not acted so fast and ‘so much,’ we would be doing even better
than we are doing right now. This is our chance to build unparalleled wealth
and success for the U.S., GROWTH… Don’t blow it!”
The US central bank raised the benchmark borrowing rate four times last
year but seems almost certain to pull back with the first cut in a decade at
its policy meeting July 30-31.
Recent comments from Fed officials seemed to confirm the signal that
policymakers are prepared to act to sustain US growth in the face of a
slowing global economy and persistent trade tensions with China.
“You don’t need to wait until things get so bad to have a dramatic series
of rate cuts,” Fed Vice Chairman Richard Clarida told Fox Business Network on
Thursday.
That comment echoed a statement earlier Thursday from John Williams, the
influential vice chairman of the Fed’s policy committee, who talked about the
need to vaccinate when rates are very low.
“When you only have so much stimulus at your disposal, it pays to act
quickly to lower rates at the first sign of economic distress,” said
Williams, who is president of the New York Federal Reserve Bank.
Trump said he liked Williams “first statement much better than his second.
His first statement is 100% correct in that the Fed ‘raised’ far too fast &
too early.”
The New York Fed had no comment on Trump’s tweets, which were only the
latest in long series of attacks which have flaunted the recent tradition of
protecting the independence of the central bank.
BSS/AFP/HR/1112