Donald Trump Said The Fed "disappointed" Him By Not Betting On a Higher Interest Rate Drop

The president of the United States, Donald Trump, said Wednesday that the president of the Federal Reserve (Fed), Jerome Powell, "disappointed" him by not betting on a prolonged cycle of reduction in interest rates, although the central bank announced a reduction of a quarter point.

"What the market wanted to hear from Jay (Jerome) Powell and the Fed was that this was the beginning of a prolonged and aggressive rate reduction cycle that would allow us to keep pace with China, the European Union and other countries in the world." , said the president on Twitter.

"As usual," he added, "Powell let us down."


Likewise, Trump, who usually boasts of his economic measures, congratulated himself on the low inflation in the US and stressed: "We are winning anyway, but I am certainly not receiving much help from the Federal Reserve!"

This is the first cut in the price of money in more than a decade, since the previous one occurred just after the acute financial crisis of the end of 2008.

At a press conference, Powell said the reduction in interest rates "is not the beginning of a prolonged cycle" of cuts, but also said it was the last.

Markets reacted with declines: Wall Street closed with losses on its three indicators and Dow Jones of Industriales, the main indicator of the New York Stock Exchange, fell 1.23%.

For its part, the US economy slowed down in the second quarter, according to the first official calculation, at an annual rate of 2.1% compared to 3.1% previously registered at the beginning of the year.

Year-on-year inflation fell two tenths in June to 1.6%, which remains persistently below the annual target of 2% of the Fed.

To add uncertainty, Trump has criticized the central bank and Powell for months, whom he appointed and whose term ends in February 2022.

This same Monday, Trump again claimed a reduction in the price of money and insisted on his criticism of the rate hikes that the Fed has previously carried out.

Faced with these criticisms, Powell once again insisted on the independence of the institution whose decisions, he said, are based exclusively on economic data and not on "political considerations."



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