WASHINGTON – President Donald Trump blasted Federal Reserve Chairman Jerome Powell in a series of Monday morning tweets for leaving interest rates unchanged.
….Think of what it could have been if the Fed had gotten it right. Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s. Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!
— Donald J. Trump (@realDonaldTrump) June 24, 2019
At a meeting on Wednesday, the central bank’s Federal Open Market Committee (FOMC) voted to keep its federal funds’ rate at 2-1/4 to 2-1/2%. However, the Fed signaled that rate cuts may be coming soon.
The Fed has kept rates at existing levels since January.
The Fed made four modest rate adjustments in 2018.
Trump has consistently pressured Powell to lower interest rates. Trump has blamed the Fed for the economy not climbing by 4% GDP last year. The economy grew at 3.1% in 2018.
Trump has dismissed reports that say he is looking to replace Powell.
The Fed has historically kept interest rates low when the economy is sluggish to encourage borrowing. The Fed has historically raised interest rates when the economy is strong so as to keep pace with inflation.