Interest rates have been cut for the third time this year in the U.S. but President Trump continues to lash out on Fed chair Jerome Powell.
On Thursday, President Trump says that people are “disappointed” by the Federal Reserve.
The Federal Reserve has lowered interest rates down by 25 basis points. Its target range is at 1.5 percent to 1.75 percent.
As was expected the Fed cut interest rates. But the president wants the interest rates to go into the negative territory. He claims that other countries are hitting very low inflation levels to stimulate their economies, by bringing down interest rates.
Just as election nears, the president wants the financial market to bring in more liquidity into the economy. The president has made aggressive statements against the fed, putting pressure to cut back interest rates.
However, the fed chair Jerome Powell, says that there are limits to what the Fed can do. The government should bring in measures to bring in liquidity flow by increasing its spending and through tax cuts.
The world’s biggest economy has been showing a growth of less than 2 percent. Growth has come down and the manufacturing sector has also slowed down.
The trade war with China has brought down global trade, bringing in a slowdown that has hit all countries. In particular, exports from the U.S. have gone down, and production levels have gone down too.
Since his appointment, the Fed Chairman Jerome Powell had come under constant criticism from the president. After the trade attacks on China, the Fed has been facing immense pressure from the president to bring down interest rates. President Trump had used abusive tweets showing his anger against the Fed for not cutting down interest rates, saying that “too little” has been done.
The president claims that the Fed has not cut interest rates appropriately, and this has put the economy at a competitive disadvantage.