Trump Attacks Fed for Not Cutting Rates Last Week

June 24, 2019 Share Print 0

The Federal Reserve’s brief four-day respite from criticism by President Donald Trump ended abruptly Monday when the president tweeted that the central bank was acting like a stubborn child for refusing to cut interest rates last week.

In two tweets early Monday morning, the president said the Fed doesn’t know what it is doing.

The day after the Fed’s decision on Wednesday, Trump had sounded more or less sanguine about the Fed’s decision to hold off from a rate cut, saying you “can’t win them all.”

On Monday, the president was back to his favorite theme of his criticism of Fed Chairman Jerome Powell: that the Fed’s rate hikes and “quantitative tightening” quashed what would have been an economic miracle engineered by his tax cut plan.

In his tweet, Trump termed the Fed’s policy stance “large scale tightening” and said economic growth last year would have been above 4% or 5%, leading to “thousands of points higher on the Dow” if the central bank had behaved like other central banks.

via MarketWatch

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.