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HomeNewsTrump says 'stubborn child' Fed 'blew it' by not cutting rates

Trump says ‘stubborn child’ Fed ‘blew it’ by not cutting rates

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President Donald Trump has called the US central bank a “stubborn child” who “blew it” by not cutting interest rates during its policy meeting last week.

In a pair of Monday morning tweets, Trump argued the Federal Reserve System, informally known as the Fed, “doesn’t know what it’s doing.”

He touted the strength of the American economy while slammed the Federal Reserve for not providing more stimulus for economic growth.

The Federal Reserve announced last week that it would hold interest rates for the time being, but could cut rates if the economy slows, trade tensions rise and inflation remains low.

The Fed had been under immense pressure to cut rates from Trump who has often accused it of hindering growth through its four rate hikes last year.

Trump on Monday said that the American economy is “on course to have one of the best Months of June in US history,” but could have been even better if the Fed added stimulus through cutting interest rates.

“Think of what it could have been if the Fed had gotten it right. Thousands of points higher on the Dow, and GDP in the 4’s or even 5’s,” Trump tweeted. “Now they stick, like a stubborn child, when we need rates cuts, & easing, to make up for what other countries are doing against us. Blew it!”

Earlier this month, Trump said the Fed had put him at a disadvantage in the trade war with Beijing but despite that “China is getting absolutely decimated” by his actions.

Trump said the Federal Reserve System had been “very, very destructive” to the US economy.

He added that “they (the Fed) certainly didn't listen to me because they made a big mistake. They raised interest rates far too fast.”

Trump lamented that Chinese President Xi Jinping can issued directions to their central bank and make up for the impact of the tariffs imposed by the US president on Chinese goods.

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