Samson: 7 tweets highlight Trump’s pressure on the Fed
31st July 2019
US President Donald Trump has repeatedly attacked the Federal Reserve , demanding lower interest rate, which sees too high, undermining the competitive advantage with China, Europe and hurt the world’s largest economy.
The Trump attack on the US central bank has intensified since the last meeting on June 19, in which the Fed decided to set interest rates at 2.25 percent to 2.50 percent. Despite growing expectations that the Federal Reserve will cut interest rates on Wednesday, and the bank’s own signals, Trump has been steadfast in lobbying for monetary easing through 7 tweets since the last meeting.
Trump’s criticism of the federation varied between television interviews and statements to reporters. He described the bank as crazy about his policy, Draghi hoped instead of Powell, and called for a substantial interest rate cut, but we are monitoring the tweets in this report.
On June 24, after the Fed’s decision to hold the last meeting, the US president criticized the central bank, saying he did not know what to do. “The Fed has raised interest rates very quickly, disrupted our desires to reduce them or resorted to a concessional policy to compensate for what other countries are doing against us like a stubborn child,” Trump said.
Trump, in a July 6 tweet, also described the Federal Reserve as the problem facing the United States, noting that it often raised interest rates while competitors did the opposite. “Other countries around the world are doing anything possible to exploit the United States, while our Fed has no idea.”
The US president condemned the high interest rates again in a July 19 memo, noting that without the Fed policy, the US economy would have had another affair. “The frenzy of quantitative stress must be stopped, as we are in a competitive world and the gains are big, but not because of the Fed,” Trump said.
The US president intensified his tweets, which reached 4 tweets in the week before the Fed meeting and
in a July 22 tweet, Trump called on the Fed to cut a strong and fast rate. “With almost no inflation, the United States is forced unnecessarily to pay a much higher rate of interest than other countries because of the highly misleading federalism. In addition, quantitative tightening continues, making it difficult for the United States to compete.”
The US president also commented on official data showing that the US economy slowed to 2.1 percent in the second quarter of this year, in a tweet on July 26. Trump said: “Second quarter GDP growth of 2.1 percent is not bad because of weight Too heavy for the Fed anchor around our neck, and almost no inflation.”
On July 29, a day before the Federal Reserve meeting, the US president noted that the central bank would do little to stimulate the economy. “The EU and China will cut interest rates and pay money within their systems, making it easier for manufacturers to sell products,” Trump said.
On the same day, more than an hour later, the US president followed this chant by saying that a small cut in interest was not enough for the Fed after it had increased too much.
“Other countries like China know how to play the game against the United States, while the Fed took all the wrong moves,” Trump said. LINK
