Trump blasts the Fed ahead of its next meeting

Trump blasts the Fed ahead of its next meeting

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Fed Chairman Jerome Powell today during his testimony before the Senate Federal Reserve Board's semiannual report to Congress 2018, (Photo ©2018 Doug Christian)
Fed Chairman Jerome Powell today during his testimony before the Senate Federal Reserve Board's semiannual report to Congress 2018, (Photo ©2018 Doug Christian)

WASHINGTON – In a Monday morning tweet, President Donald Trump blasted the Federal Reserve for not lowering interest rates in fashion with the E.U. and China and predicted that the central bank “probably will do very little by comparison” to stimulate U.S. economic growth.

Chairman Jerome Powell has signaled that the Fed will vote to lower rates in response to growing economic uncertainty. The Fed is expected to cut rates by a quarter of a point.

The central bank’s Federal Open Market Committee is scheduled to hold its next meeting on Tuesday and Wednesday.

Trump has repeatedly pressured Powell to lower interest rates.

The central bank has kept its federal fund rates at 2.25% to 2.50% since January.

The Fed made four modest rate increases in 2018.

Trump has blamed the rate increases for the economy not growing at 4% GDP last year. The economy grew at 3.1% in 2018.

The economy grew at 2.1% in the second quarter of this year.

Despite frustration with the Fed, Trump has said he is not looking to replace Powell.

Powell told Congress earlier this month that he will remain in his post even if Trump asks him to resign.

The Fed has generally lowered interest rates when the economy is slow in order to encourage borrowing. The Fed has generally raised rates when the economy is booming.

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