Trump: Expected Fed rate cut is ‘not enough’
President Donald Trump blasted the Federal Reserve before its interest rate decision this week, arguing that the central bank’s expected quarter-point cut is “not enough.”
Trump, in a couple of tweets Monday morning, said the Fed had raised rates “way too early and way too much” and also criticized the central bank for its policy of gradually shrinking its massive bond holdings.
The president has said the Fed should restart its bond-buying program known as “quantitative easing,” a measure the Fed took in the wake of the 2008 financial crisis to stop the collapse of the housing market and restart the economy.
“While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering,” Trump tweeted Monday.
“We are competing with other countries that know how to play the game against the U.S.,” he added, citing the European Union and China. “The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!”
The Fed has raised rates nine times since late 2015 but decided to pause that campaign at the beginning of 2019 as it eyed slowing global growth and trade tensions, as well as lower-than-expected inflation.
The central bank is expected to follow through with an “insurance cut” on Wednesday, a small move to encourage the economy — showing some signs of slowing — to continue the U.S.’ record expansion.