President Trump continued to lash out at the Fed and urged the policy makers to again slash borrowing costs and inject cash into the economy.
“Would be sooo great if the Fed would further lower interest rates and quantitative ease,” Trump tweeted.
QE, also known as large-scale asset purchases, is a monetary policy whereby the Fed buys predetermined amounts of government bonds or other financial assets in order to inject liquidity directly into the economy.
President Trump also lobbied for a weaker USD.
“The Dollar is very strong against other currencies and there is almost no inflation,” he added. “This is the time to do it. Exports would zoom!”
President Trump, who has made his economic record the centerpiece of his bid for re-election next year, maintains his attacks on the Fed for not easing monetary policy faster or deeper.
President Trump has publicly hammered Chairman Powell and the Fed for months, complaining about its rate increases during Y 2018 and continuing to pound the Fed this year even as it has cut rates 3X to keep a record US expansion on track, as the President seeks to deflect blame for slowing growth that many have pinned on his trade dispute with China.
Chairman Powell last week announced the FOMC’s decision to hold interest rates steady in a range of 1.5% to 1.75%, and signaled borrowing costs would remain there for the foreseeable future.
Fed officials are working to keep inflation, which is short of the central bank’s 2% target, from getting too low to give policymakers more room for adjusting monetary policy.
With less than a year until the Y 2020 vote, the world’s largest economy has been generally holding up this year on resilient consumption.
GDP increased at a 1.9% annualized rate in Q-3, though that was down from 2% in Q-2 and 3.1% in Q-1.
President Trump said he “protested” US interest rates that he considers too high relative to other developed countries in a meeting last month with Fed Chairman Powell.
Mr. Powell met with President Trump and Treasury Secretary Mnuchin at the White House residence to discuss the economy. It was the 2nd face-to-face meet this year between President Trump and Mr. Powell.
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