Trump heaps pressure on Fed and its chairman Powell to cut rates

Trump heaps pressure on Fed and its chairman Powell to cut rates

President Donald Trump on Wednesday continued to pressure the Federal Reserve and the central bank's chairman to lower interest rates, saying its policies were hampering U.S. growth and reducing the country's ability to compete economically.

U.S. President Donald Trump answers reporters questions in the Oval office of the White House In Wa
FILE PHOTO: U.S. President Donald Trump answers questions from reporters as he meets with Romania's President Klaus Iohannis in the Oval Office of the White House In Washington, U.S. August 20, 2019. REUTERS/Kevin Lamarque

WASHINGTON: President Donald Trump on Wednesday continued to pressure the Federal Reserve and the central bank's chairman to lower interest rates, saying its policies were hampering U.S. growth and reducing the country's ability to compete economically.

"Doing great with China and other Trade Deals. The only problem we have is Jay Powell and the Fed. He's like a golfer who can't putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT - but don't count on him!" Trump wrote on Twitter.

"We are competing with many countries that have a far lower interest rate, and we should be lower than them," he added.

The comments by Trump, who has repeatedly criticized the Federal Reserve's policies, come as he seeks to downplay worries that a trade war between the United States and China could weigh on the U.S. economy and trigger a possible recession before the November 2020 presidential election.

Minneapolis Federal Reserve Bank President Neel Kashkari, who does not have a vote on the Fed's monetary policy committee this year but participates in policy discussions at the central bank, urged the Fed to use forward guidance as the global economy has slowed in an op-ed published in the Financial Times on Wednesday.

(Reporting by Makini Brice; Editing by Doina Chiacu and Chizu Nomiyama)

Source: Reuters

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