US President Donald Trump on Monday renewed his attacks on the Federal Reserve, saying the central bank’s reluctance to cut interest rates was standing in the way of blowout economic expansion.
US President Trump renewed his attacks on the Federal Reserve, saying the central bank’s reluctance to cut interest rates was standing in the way of blowout economic expansion. (REUTERS)
{{^htLoading}} {{/htLoading}}
The Fed last week left benchmark US lending rates untouched but signaled it could ease them soon if the economic outlook deteriorates.
{{^usCountry}}{{/usCountry}}
“Despite a Federal Reserve that doesn’t know what it is doing... we are on course to have one of the best Months of June in US history,” Trump tweeted, arguing that lower rates would have driven GDP growth rates as high as five percent.
“Now they stick, like a stubborn child when we need rate cuts & easing, to make up for what other countries are doing against us. Blew it!” Last week, Fed Chairman Jerome Powell opened the door to a rate cut, saying persistent trade friction and slowing global growth, among other factors, had “strengthened” the case for looser monetary policy.
{{^htLoading}} {{/htLoading}}
{{^usCountry}}
A single member of the Fed’s rate-setting Federal Open Market Committee pushed for an immediate cut to help preserve the economic expansion.
{{/usCountry}}
{{#usCountry}}
A single member of the Fed’s rate-setting Federal Open Market Committee pushed for an immediate cut to help preserve the economic expansion.
{{/usCountry}}
But Powell insisted on the central bank’s political independence, brushing aside news reports that Trump had considered demoting him. He has maintained that central bankers pay no attention to political pressure.
After raising interest rates nine times since 2015, gradually emerging from a decade of ultra-low rates in the aftermath of the Great Recession, policymakers have signaled a shift in course, with their next move likely to be a cut.
Meanwhile, the US economy has given off mixed signals: Surveys of consumer confidence and business activity are running hot, unemployment is still near 50-year lows, and consumer spending has been strong in recent months.
{{^htLoading}} {{/htLoading}}
But growth in the second quarter could be about half the pace of the first, manufacturing has continued to weaken and business investment has declined.
And Trump’s threat to jack up tariffs on another $300 billion in Chinese goods threatens to send shockwaves through the global economy.
(This story has been published from a wire agency feed without modifications to the text.)
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.
Get the latest World News, breaking headlines and global updates from the US, UK, Pakistan, Bangladesh, Russia and other countries. Follow major international events on Hindustan Times.
Get the latest World News, breaking headlines and global updates from the US, UK, Pakistan, Bangladesh, Russia and other countries. Follow major international events on Hindustan Times.
