President Trump ratcheted up his campaign to get the Federal Reserve to cut rates.
The President took to Twitter to blame the central bank for creating an environment where interest rates in the U.S. are higher than in other nations.
“Because of the faulty thought process we have going for us at the Federal Reserve, we pay much higher interest rates than countries that are no match for us economically,” he tweeted. “In other words, our interest costs are much higher than other countries, when they should be lower. Correct!”
One hour later, the President followed up with a two-part tweet citing a speech made yesterday by New York Federal Reserve President John Williams when he said central bankers need to “act quickly” as economic growth slows, adding, “It’s better to take preventative measures than to wait for disaster to unfold.” A spokesperson for the Fed later walked back Williams’ comments, stating it was “an academic speech on 20 years of research [and] it was not about potential policy actions at the upcoming FOMC meeting.”
“I like New York Fed President John Williams first statement much better than his second,” Trump tweeted. “His first statement is 100% correct in that the Fed “raised” far too fast & too early. Also must stop with the crazy quantitative tightening. We are in a World competition, & winning big, but it is no thanks to the Federal Reserve. Had they not acted so fast and “so much,” we would be doing even better than we are doing right now. 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 has repeatedly called on the Fed to lower rates and has openly questioned the leadership of Jerome Powell as Fed Chairman. Powell has hinted at a possible rate cut this year, but has not made a clear declaration regarding when it would occur.