Trump Won’t Be Satisfied With One Rate Cut
Skerdian Meta • 2 min read
US President Donald Trump has been bashing the FED for a long time, as the FED has been hiking interest rates intensively in the last few years. They have brought rates from 0.25% to 2.50% during this time, but now the US economy has made a reversal and has softened considerably. The FED has shifted to dovish again and they are widely anticipated to cut rates by 0.25% on Wednesday. Trump would have liked more cuts, so he has tweeted a couple of times already today. Here are the tweets:
“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 “raised” way too early and way too much. Their quantitative tightening was another big mistake. While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering. We are competing with other…countries that know how to play the game against the U.S. That’s actually why the E.U. was formed….and for China, until now, the U.S. has been “easy pickens.” The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!Trump is happy the FED is cutting rates but he would like them to keep cutting as the rest of the major central banks have entered another dovish phase after the one we saw following the global financial crisis. I don’t think the FED has planned to cut again after this one; they will likely remain in a wait-and-see mode after Wednesday, which should be bullish for the USD.