Trump takes on Fed, Powell faces recession worries

President Donald Trump is behind Fed President Jerome Powell.Carlos Barria / Reuters

President Donald Trump criticized the US Federal Reserve and its president, Jay Powell, in a tweet Wednesday morning, while he was seeking to blame the rising concerns over the recession over ongoing trade tensions.

"Doing very well with China and other trade agreements, the only problem we have is Jay Powell and the Fed," the president wrote on Twitter. "He's like a golfer who can not putter, has no contact." "Significant growth in the United States – he's doing the right thing, BIG CUT – but do not count on him!" 39, now he said that it was wrong, and only let us down … "

The White House has publicly rebuffed its worries about the economy even after publishing an important recession warning for the first time since the global financial crisis last week.

However, the Trump administration appeared increasingly aware that the ongoing trade dispute with China, which had resulted in tariffs of more than US $ 350 billion between the largest economies, could hurt l & # 39; economy. One morning consult / poll POLITICO revealed that nearly half of Trump's supporters would blame Trump at least in part for a recession.

In addition to its unprecedented pressure campaign for a reduction in interest rates, the White House announced this week its intention to try to redistribute the economy by means of cuts in the rate of interest. 39, taxes on wages or capital gains. Authorities also temporarily delayed some of the planned tariffs due to come into effect in September, recognizing that this decision could have a negative impact on the holiday shopping season.

The Federal Open Market Committee, which is independent of the White House, has discussed the slowdown in overseas growth and trade disputes because it has lowered its benchmark interest rate. a quarter point at the end of July. Trump quickly lobbied for a further one percentage point cut, a decision that policymakers would normally only look at during a severe downturn in the economy.

"….. We are competing with many countries that have a much lower interest rate and we should be lower than them," Trump said. "Yesterday," the highest dollar in the United States. " No inflation. Wake up to the Federal Reserve. Such growth potential, almost like never before! "

The Fed is expected to publish the minutes of its last meeting at 2 pm

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