Trump denies he threatened to demote Fed chairman Powell

Marco Green
June 25, 2019

The president again criticized the Federal Reserve on Monday for not cutting interest rates, keeping up his pressure on the central bank to change its policies.

"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 USA 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!" he concluded his second tweet.

Last week, the Fed reserve kept rates stable and suggested that there will not be any rate cuts in 2019. Policymakers at the US central bank - who dropped the word "patient" from the statement, in a nod to those anxious about the evolving economic outlook - said they expect one rate cut next year and one rate hike in 2021.

Trump said the USA economy is strong enough to "bull through" what he sees as the headwinds created by the Fed's four interest rate hikes in 2018 "but I'm not happy with" Powell's actions.

President Trump denied that he threatened to demote Federal Reserve Chairman Jerome Powell even though he says he has the right to do so.

Trump also went after Powell on NBC's 'Meet the Press, ' where he didn't knock down reports that his administration had considered demoting the Fed chair.

And Trump's threat to jack up tariffs on another $300 billion in Chinese goods threatens to send shockwaves through the global economy.

Trump repeated his claim that had Powell refrained from raising rates and using quantitative tightening, gross domestic product and the stock market would both be exceeding their current numbers. In his latest tweet, Trump reiterated his belief that if the USA central bank would cut interest rates, the economy would be stronger.

Other reports by Click Lancashire

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