President Trump lashed out at the Federal Reserve yet again on Friday morning, slamming the central bank for keeping interest rates too high – and putting the U.S. at a disadvantage to other countries.
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“Because of the faulty thought process we have going for us at the Federal Reserve, we may much higher interest rates than countries that are no match for us economically,” he said in a tweet. “In other words, our interest costs are much higher than other countries, when they should be lower. Correct!”
He continued the tirade in a later tweet, saying the U.S. economy would be doing "even better than we are doing right now" if the central bank hadn't tightened monetary policy again in December.
"This is our chance to build unparalleled wealth and success for the U.S., GROWTH, which would greatly reduce % debt. Don’t blow it!"
The president frequently attacks the Fed, and its chairman Jerome Powell, for not keeping interest rates lower; at the beginning of the month, he called the regulatory body the “most difficult problem” facing the U.S.
The Fed voted in December to raise the benchmark federal fund rate to a range between 2.25 percent and 2.50 percent, the fourth time it did so in 2018. Although rates remain at the highest range in more than a decade, they’re historically low.
Trump's ire grew three weeks ago, when European Central Bank President Mario Draghi said they were ready to cut interest rates if the economy needed it.
“Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA,” Trump wrote in a tweet. “They have been getting away with this for years, along with China and others.”
However, Trump could get his wish soon: Last week, during a two-day testimony on Capitol Hill, Powell signaled that policymakers could cut rates at the end of the month during the Federal Open Market Committee meeting in the face of growing economic uncertainties.
"Based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook. Inflation pressures remain muted," he said in prepared remarks.
Traders are currently forecasting a 100 percent chance of a rate cut, with most expecting a shallow cut of 25 basis points.