President Donald Trump on Monday renewed his call for the Federal Reserve to sharply reduce its interest rate target and accused its chairman of suffering from a “horrendous lack of vision.”
The tweets are the latest in Trump’s year-long feud with the Fed chairman. The president began publicly criticizing the Fed last summer, accusing it of hampering his administration’s efforts to ramp up economic growth.
…..The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!
— Donald J. Trump (@realDonaldTrump) August 19, 2019
Initially, Trump’s public criticism of the Fed and its chairman, Jerome Powell, startled many investors. Not since Ronald Reagan had a U.S. president been so openly critical of the central bank.
But financial markets have largely backed up the president’s main critique that the Fed had raised interest rates too aggressively last year. The Fed reduced its interest rate target for the first time in a decade last month but financial markets have remained volatile and long-term interest rates have continued to fall, indicating that investors think the Fed will cut rates even further.