Trump says US economy ‘handcuffed’ by Fed, wants further rate cut

US President Donald Trump talks to reporters on the South Lawn of the White House in Washington August 9, 2019. — Reuters pic
US President Donald Trump talks to reporters on the South Lawn of the White House in Washington August 9, 2019. — Reuters pic

WASHINGTON, Aug 9 — US President Donald Trump today called on the Federal Reserve to lower interest rates by a full percentage point, saying the nation’s economy was being “handcuffed” by the US ’s monetary policy.

Trump, speaking to reporters at the White House, said a strong was hurting American manufacturers and that the Fed needed to lower rates further despite its cutting rates last month for the first time since 2008.

A full percentage point cut would be even more aggressive than the three 0.75 percentage-point reduction investors currently expect the Fed to make in small steps between now and .

The Republican president did not give any other details about how he would want the Fed to proceed on carrying out such a drastic reduction.



Delivered all at once, a full percentage point would be dramatic – the sort of step associated with a severe economic shock, as opposed to the quarter-point increments that the Fed tends to rely on to fine-tune its target interest rate.

On July 31, the Fed cut its target interest rate by 25 basis points to 2.00-2.25 per cent, citing implications of global developments for the US economic outlook and muted pressures. — Reuters

Source: The Malay Mail Online





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