Tags: Financial Markets | Trump Administration | federal reserve | rate | cut

Trump Demands 'More Easing and Cutting' From Fed

seated donald trump points to the left with his right index finger
(Mandel Ngan/AFP via Getty Images)

Tuesday, 03 March 2020 11:05 AM

Soon after the Federal Reserve announced an emergency half-point cut in interest rates Tuesday to offset the economic impact of the growing coronavirus epidemic, President Donald Trump demanded more.

"The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors," Trump tweeted. "We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!"

The Fed's emergency cut came not long after early morning Twitter fire from Trump on the subject.

Trump said earlier Tuesday that higher borrowing costs are tough on its exporters and put the country at a disadvantage.

"Our Federal Reserve has us paying higher rates than many others, when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big," Trump said in a pair of posts on Twitter.

Trump has repeatedly criticized Fed Chair Jerome Powell in the recent past and has said that the bank has kept interest rates too high.

It was the Fed's first emergency rate cut since 2008 at the height of the financial crisis, underscoring how grave the central bank views the fast-evolving situation.

In a statement, the central bank said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%.

"The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate," the Fed said a statement.

The decision was unanimous among policymakers.

In a news conference, Powell said the coronavirus would weigh on the U.S. economy for some time. He said he believed the central bank's action would provide "a meaningful boost to the economy."

“We saw a risk to the outlook for the economy and chose to act,” Powell said. “I do know that the U.S. economy is strong.. I fully expect that we will return to solid growth and a solid labor market as well.”

The Fed's decision to cut interest rates before its next scheduled policy meeting on March 17-18 reflects the urgency with which the Fed feels it needs to act in order to prevent the possibility of a global recession.

Material from Bloomberg, Reuters and the Associated Press has been used in this report.

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Soon after the Federal Reserve announced an emergency half-point cut in interest rates Tuesday to offset the economic impact of the growing coronavirus epidemic, President Donald Trump demanded more."The Federal Reserve is cutting but must further ease and, most...
federal reserve, rate, cut
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2020-05-03
Tuesday, 03 March 2020 11:05 AM
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