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Trump Tweets Fed 'Probably Will Do Very Little' to Lower Rates

Trump Tweets Fed 'Probably Will Do Very Little' to Lower Rates
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Monday, 29 July 2019 08:39 AM

President Donald Trump attacked the Federal Reserve in a tweet Monday, saying the U.S. central bank “probably will do very little” to counteract actions by Europe and China to ease monetary policy.

Fed officials are widely expected to lower interest rates by a quarter-percentage point when they meet Tuesday and Wednesday in Washington.

"The E.U. and China will further lower interest rates and pump money into their systems, making it much easier for their manufacturers to sell product. In the meantime, and with very low inflation, our Fed does nothing - and probably will do very little by comparison. Too bad!" Trump tweeted.

Trump has been pushing the Fed to cut interest rates as policy makers ready for their decision this week. The president has repeatedly attacked the Fed for more than a year, calling on policy makers and Chairman Jerome Powell to reduce borrowing costs after increasing them in 2018.

"The Fed “raised” way too early and way too much. Their quantitative tightening was another big mistake. While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering. We are competing with other....." Trump tweeted.

"....countries that know how to play the game against the U.S. That’s actually why the E.U. was formed....and for China, until now, the U.S. has been “easy pickens.” The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!" he tweeted.

While data on the U.S. economy have been generally solid, policy makers have said they’re monitoring the risks of slowing global growth and elevated trade tensions. Fed officials are in a quiet period on public comment ahead of the gathering.

European Central Bank President Mario Draghi last week signaled the ECB will resume easing policy this year as he declared the eurozone’s economic outlook was growing “worse and worse.”

Trump has recently focused on the value of the dollar, which has risen against other major foreign currencies, making U.S. exports more expensive abroad and imports cheaper.

He told reporters Friday that he had not ruled out doing “something” on the currency after his economic adviser Larry Kudlow earlier declared the administration had taken intervention to weaken the currency off the table.

Trump has claimed that monetary policy at the ECB and in China has been aimed at weakening their respective currencies, and called on the Fed to respond with lower rates.

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Economy
President Donald Trump attacked the Federal Reserve in a tweet Monday, saying the U.S. central bank "probably will do very little" to counteract actions by Europe and China to ease monetary policy.
trump, fed, tweets, rates
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2019-39-29
Monday, 29 July 2019 08:39 AM
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