The last Federal Reserve rate cut wasn’t enough to spark a sustaining rally in the major indexes. After the central bank trimmed rates by 25 basis points, further breakdowns in trade negotiations between the U.S. and China caused sell-offs, prompting U.S. President Donald Trump to prod the Fed on more rate cuts.
President Trump took to Twitter to put forth his interest rate policy agenda—three more rate cuts.
“Three more Central Banks cut rates.” Our problem is not China – We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege – Our problem is a Federal Reserve that is too…..
— Donald J. Trump (@realDonaldTrump) August 7, 2019
It’s a plea to the Fed who will meet in September to once again decide the fate of interest rates. Given the way the markets have been exhibiting its more volatile side as of late, it’s an opportunity to clamor for more rate cuts.
Trump said the U.S. economy is not the issue nor is the problem of trade wars with China affecting the markets. Instead, he pointed to a “tight is right” policy by the Fed as the major market distractor.
“Our problem is not China – We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege,” Trump added. “Our problem is a Federal Reserve that is too…..proud to admit their mistake of acting too fast and tightening too much (and that I was right!).”
“Three more Central Banks cut rates.” Our problem is not China – We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege – Our problem is a Federal Reserve that is too…..
— Donald J. Trump (@realDonaldTrump) August 7, 2019
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