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Trump urges Fed to do more than a 'small rate cut'

29 July 2019 18:38 (UTC +04:00)

U.S. President Donald Trump on Monday urged the Federal Reserve to go beyond making a “small rate cut” this week, raising pressure on the central bank to lower borrowing costs by more than Wall Street expects, APA reports citing Reuters.

In a series of tweets ahead of the Fed’s meeting scheduled for Tuesday and Wednesday, Trump reiterated his criticism of independent U.S. monetary policymakers, accusing them of acting too cautiously in comparison to China and Europe. The Republican president, who is seeking re-election in 2020 and had tied his efforts in part to the strength of the U.S. economy, is seeking a financial jolt from a cut in short-term borrowing rates to counter a global economic slowdown.

Policymakers are widely expected to cut rates by a quarter percentage point on Wednesday, although some investors see chances of a half percentage point reduction: “The E.U. and China will further lower interest rates and pump money into their systems, making it much easier for their manufacturers to sell product. In the meantime, and with very low inflation, our Fed does nothing - and probably will do very little by comparison. Too bad! The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!” he wrote on Twitter.