Friday, President Trump renewed his criticism of the Fed, complaining that the US is paying “much higher interest rates” than other countries, even as central bankers prepare for a meeting later this month at which they are widely expected to ease policy.
“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,” the President said in the first of a series of tweets. “In other words, our interest costs are much higher than other countries, when they should be lower. Correct!”
The FOMC meets on 30-31 July for a meeting in DC which it has clearly signaled it is preparing to lower borrowing costs, to counter uncertainties stemming from Trump’s trade war and weakening global growth. The target range for their policy benchmark is currently 2.25% to 2.5%.
Investors have fully priced in at least a quarter-point move and increased their bets Thursday that the Fed would go by as much as a half point after 2 of its Top officials discussed the benefits of acting quickly when rates are already low.
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