Trump blasts the Fed, urges the central bank to lower interest rates

Trump blasts the Fed, urges the central bank to lower interest rates

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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/TMN)
After Fed Chairman Jerome Powell gave a speech Friday morning, President Donald Trump attacked him on Twitter. (File photo ©2018 Doug Christian/TMN)

WASHINGTON – President Donald Trump blasted the Federal Reserve in a series of Monday morning tweets and urged the central bank to cut interest rates.

Chairman Jerome Powell hinted in testimony to Congress on July 10 that the central bank’s Federal Open Market Committee (FOMC) will vote to lower rates in response to growing economic uncertainty.

The committee is scheduled to hold its next meeting July 30-31.

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

Four modest rate adjustments were made in 2018.

Trump has consistently pressured Powell to lower interest rates. Trump has blamed the Fed for the economy not climbing by 4% GDP last year. The economy grew at 3.1% in 2018.

Trump has dismissed reports that say he is looking to replace Powell.

Powell has said 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.

At present the Dow Jones Industrial Average (DJIA) is above 27,000.

The index first hit that historical marker after Powell signaled that the Fed is likely to lower rates.

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