'Our Fed does nothing': Trump attacks the independent central bank days before policy meeting
- President Donald Trump lashed out at the independent Federal Reserve on Monday, a day before the start of a policy meeting where the central bank will make a decision on interest rates.
- The Fed is widely expected to cut interest rates Wednesday, but forecasters are split on the size of the adjustment.
- Trump has increasingly sought to boost the economy ahead of the 2020 elections.
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President Donald Trump lashed out at the independent Federal Reserve on Monday, a day before the start of a policy meeting where the central bank would make a decision on interest rates.
The president once again suggested the central bank should slash rates and pump money into the economy, arguing that monetary policy at home has made it harder for the US to compete in the global market.
"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," the president wrote on Twitter. "In the meantime, and with very low inflation, our Fed does nothing - and probably will do very little by comparison. Too bad!"
The Fed is widely expected to cut interest rates Wednesday, but forecasters are split on the size of the adjustment. Most were expecting a 25-basis point cut on Monday, according to CME Group, but the probability of a half percentage point move was around 23%.
Policymakers are weighing otherwise solid growth against strains on the economy, including below-target inflation and a series of global trade disputes the Trump administration started last year.
Trump has increasingly sought to boost the economy ahead of the 2020 elections. He has attempted to install political allies at the top of the Fed and reportedly considered ways to remove Jerome Powell, his handpicked chairman of the central bank.
The Trump administration recently considered ways to artificially weaken the dollar, but White House economic adviser Larry Kudlow said Friday it had ruled out taking such action. Experts said that move would amount to currency manipulation, a practice precluded by international agreements.
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