Trump says Fed should cut interest rate

Trump says Fed should cut interest rate
© Getty

President TrumpDonald TrumpCheney challenger wins Wyoming Republican activists' straw poll We must do more to protect American Jews 6 in 10 say they would back someone other than Biden in 2024: Fox News poll MORE in an early morning tweet on Tuesday called for the Federal Reserve to cut interest rates significantly after coronavirus fears shook U.S. and global markets. 

“Australia’s Central Bank cut interest rates and stated it will most likely further ease in order to make up for China’s Coronavirus situation and slowdown. They reduced to 0.5%, a record low. Other countries are doing the same thing, if not more so,” Trump tweeted.

“Our Federal Reserve has us paying higher rates than many others, when we should be paying less," he added. "Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!”

ADVERTISEMENT

Trump has repeatedly criticized Federal Reserve Chairman Jerome Powell and has called for interest rate cuts during his time in office.

“As usual, Jay Powell and the Federal Reserve are slow to act. Germany and others are pumping money into their economies," the president tweeted Monday. "Other Central Banks are much more aggressive. The U.S. should have, for all of the right reasons, the lowest Rate. We don’t, putting us at a competitive disadvantage. We should be leading, not following!”

Powell said last week that the central bank would "use our tools and act as appropriate” to protect the U.S. economy. 

All three major stock indexes plunged last week in the worst week for stock losses since the 2008 financial crisis. However, by the end of trading Monday, the Dow Jones Industrial Average had gained 1,296 points in its best day since 2018. The Nasdaq composite and the S&P 500 increased 4.5 percent and 4.6 percent, respectively. 

The coronavirus has infected more than 90,000 people and killed more than 3,000 people since the outbreak began in China late last year.