Trump attacks Fed President Powell's "dire lack of vision" calls for dramatic rate cuts

President Donald Trump renewed his attack on the Federal Reserve on Monday, reprimanding Fed Chairman Jerome Powell for his "horrible lack of vision" and calling on the central bank to cut rates by one percentage point.

Our economy is very strong, despite the dreadful lack of vision of Jay Powell and the Fed, but the Democrats are trying to "want" the economy to be bad for the 2020 elections. Very selfish! Our dollar is so strong that it hurts other parts of the world …

– Donald J. Trump (@realDonaldTrump) August 19, 2019

"The Fed's rate, over a fairly short period, should be reduced by at least 100 basis points, with perhaps some quantitative easing.If this happened, our economy would be even better and the economy would be better off. the world economy would be greatly improved soon – good for everyone! "Trump tweeted Monday morning.

The president's comments are the latest in a long series of attacks against the Fed – an independent agency that, like other central banks around the world, is isolated from political interests at short term – and its key decision makers, many of whom are its own appointees.

"Our economy is very strong, despite the dreadful lack of vision of Jay Powell and the Fed, but Democrats are trying to" want "the economy to be bad for the 2020 election goals. selfish!" the president wrote.

Trump expressed growing frustration with the Fed, which raised rates seven times during its presidency. With the economy at the center of his re-election campaign for 2020, Trump wants to keep the economy on a steady footing.

Despite the strength of the stock markets and the lowest unemployment rate for almost half a century, Trump insists that "the stock market would rise 10,000 points" and that the economy would rise as a rocket "if the Fed were to reduce rates by 1% level that was traditionally associated only with extreme economic uncertainty and a recession.

Prior to the last two economic downturns in 2001 and 2007, the Fed had raised its rates twice and lowered them just before the recession a year later.

At its last meeting, in July, the Fed cut its benchmark borrowing rate by 0.25 percentage points, a move that, according to Powell, was not due to "political considerations" but rather the result of growing economic measures indicative of a global slowdown in growth. which would eventually hit the United States

Financial markets are expecting at least another rate cut this year, perhaps at the Fed's next meeting on 17 and 18 September. Some members of the Federal Open Market Committee, who vote on rate changes, are also asking for a second rate cut, likely in December.